World Economy
0

SoftBank Profit Tops Estimates

SoftBank Profit Tops EstimatesSoftBank Profit Tops Estimates

SoftBank Group Corp. reported better-than-projected second-quarter profit, with the wireless and internet businesses in Japan bringing in cash while Sprint Corp. shows signs of improvement.

Net income was 512.1 billion yen ($4.9 billion) in the period ended Sept. 30, the Tokyo-based company reported on Monday. That’s more than the 446.9 billion yen average of analysts’ projections compiled by Bloomberg. Operating income for the quarter was 334.7 billion yen, compared with their prediction for 313.9 billion yen.

Sprint’s revival and steady earnings at home have freed founder Masayoshi Son to focus on his longer-term vision for a company that’s made tens of billions investing in companies such as Alibaba Group Holding Ltd. and Supercell Oy. Son betting on the future of connected devices with the $32 billion acquisition of ARM Holdings Plc. Last month, he unveiled plans to form a new fund to invest as much as $100 billion in the global technology industry.

“The most important thing is the domestic business, and as long as that is solid, pluses and minuses from smaller businesses won’t be an influence,” said Satoru Kikuchi, an analyst at SMBC Nikko Securities Inc.

SoftBank sold its holdings in Supercell to Tencent this year for a 530.3 billion yen after-tax gain. SoftBank didn’t issue forecasts for the fiscal year through March, for which analysts are projecting net income of 1.03 trillion yen on sales of 8.94 trillion.

The cash will go toward SoftBank’s commitment to invest as much as $25 billion into the new fund over the next five years.

 

Add new comment

Read our comment policy before posting your viewpoints

Financialtribune.com