SoftBank gains on T-Mobile windfall and Arm

(Bloomberg) — SoftBank Group Corp. swung to its first profit after four consecutive quarters of losses, helped by a jump in the value of the Vision Fund’s public holdings and T-Mobile US Inc. Got unexpected profits from shares.

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The Tokyo-based technology investor reported net income of ¥950 billion ($6.4 billion) for the December quarter, reversing a loss of ¥783 billion for the same period a year earlier. It is the Japanese company’s first profit since September 2022, as it weathers volatile fluctuations in the value of its startup investments.

The Vision Fund unit reported a profit of ¥422.74 billion for the period, widening from a loss of ¥660.1 billion a year earlier. DoorDash Inc., AutoStore Holdings Inc., and Symbiotic Inc. Contributors to the Vision Fund were among the best performers. The value of Didi Global Inc. shares also rose 22% in the over-the-counter market.

The solid quarter could signal more relief to come, according to Astris Advisory analyst Kirk Boodry. “We are not overly bullish on the current portfolio, but the listing of key VF1 assets like ByteDance or Fanatics could provide some relief in 2024,” he wrote in a note ahead of earnings, referring to the Vision Fund’s investment in China’s TikTok owner. Is.” and American online sportswear and fan gear store.

SoftBank booked additional windfall profits from the arrangement to acquire more than 48 million T-Mobile shares worth approximately $8 billion. The deal was part of an agreement reached when T-Mobile acquired rival and former SoftBank unit Sprint Corp. in 2020, which was designed to give SoftBank more T-Mobile shares if the stock rose a certain number during a certain period. rises above the level.

A 40% surge in shares of newly-listed chip design unit Arm Holdings Plc in the December quarter further boosted…

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