SoftBank Group said Monday its first-half net profit soared 346.7 percent, sealing a strong recovery after a massive annual loss, as tech stocks rally and the firm sheds assets to shore up its finances.
Net profit for the six months to September came to 1.88 trillion yen ($18 billion), up from 421.6 billion yen a year earlier, the Japanese conglomerate said.
The profit surge was mainly due to gains on its investments, which topped two trillion yen for the period.
SoftBank, however, said it would not offer a forecast “as it is difficult to foresee consolidated results due to numerous uncertain factors”.
SoftBank reported a nearly $9 billion net loss in the previous full fiscal year, but quickly returned to the black in the first quarter.
SoftBank said half-year net profit soared, as tech stocks rallied and the firm shed assets to shore up financesPhoto: AFP / CHARLY TRIBALLEAU
(Bloomberg) — As Softbank Group Corp. tries to rebuild its reputation as a startup investor, the Japanese conglomerate will be able to point to several recent successes, including an obscure Chinese property startup that pulled off a blockbuster initial public offering.
SoftBank invested $1.35 billion last November in a Beijing-based company called KE Holdings Inc., which went public this August. Shares in the company, also known as Beike, soared from offering through Sept. 30 to lift the value of SoftBank’s reported stake to $6.4 billion, a 375% return. KE’s stock is up another 20% since the quarter’s close.
SoftBank founder Masayoshi Son is certain to highlight such winners when he announces quarterly earnings results on Nov. 9. The Japanese billionaire scored hits early in his career by backing Alibaba Group Holding Ltd. and Yahoo! Inc. But his reputation suffered from recent troubles at other startups, including the office-sharing
It seems like SoftBank and the Mubadala Corp. aren’t finished taking big swings at the commercial real estate business in the U.S. Even after the collapse of WeWork, the investors are doubling down on a similar business model as part of a syndicate investing $700 million into REEF Technology.
REEF began its life as Miami-based ParkJockey, providing hardware, software and management services for parking lots. It has since expanded its vision while remaining true to its basic business model. While it still manages parking lots, it now it adds infrastructure for cloud kitchens, healthcare clinics, logistics and last-mile delivery, and even old school brick and mortar retail and experiential consumer spaces on top of those now-empty parking structures and spaces.
Like WeWork, REEF leases most of the real estate it operates and upgrades it before leasing it to other occupants (or using the spaces itself). Unlike WeWork, the business actually