SoftBank sees profit surge, Son justifies Saudi ties
TOKYO:SoftBank Group Corp. founder Masayoshi Son is starting to see the benefits of his enormous technology investments—along with the scrutiny that comes from taking money from Saudi Arabia.
SoftBank reported secondquarter profit of 706 billion yen ($6.2 billion), far exceeding analyst estimates, thanks to multi-billion dollar gains from his many deals. Yet Son also faced repeated questions during a post-earnings briefing in Tokyo about his relationship with Saudi Arabia, the biggest investor in his $100 billion Vision Fund.
Son has been remaking SoftBank from primarily a telecommunications operator into a technology investment firm. His investments contributed 393 billion yen to profit in the quarter, more than all the other businesses combined.
The company cited increased valuations of India’s online hotel start-up OYO Rooms and graphics card maker Nvidia Corp. among its gains. “The Vision Fund is showing profits worthy of SoftBank 2.0,” Son said at a briefing in Tokyo. “Next year, I believe we will not only exceed these results, but may even deliver an operating profit on the level that Japan has never experienced before.”
SoftBank has faced criticism over its relationship with Saudi Arabia in the wake of the murder of government critic Jamal Khashoggi by Saudi agents. The kingdom contributed $45 billion to the Vision Fund as Son forged personal ties to Saudi Crown Prince Mohammed bin Salman, whose associates have allegedly been implicated in the killing.