Softbank Group Corp just released its fiscal quarter results for the period which ended in late June. These returned mixed results, as although the group’s Sprint Corp, its U.S. unit, returned to profit, the sale of its Alibaba shares brought a loss.
The SoftBank Group Corp. is a Japanese Internet and multinational telecommunications corporation. It was established back in 1981 by Masayoshi Son, who is also the current Chairman and CEO.
On Monday, August 07, the group released its first quarter results for the fiscal period ended in late June. According to this, the company had an operating profit of $4.3 billion or 479.3 billion yens, which topped the analyst projections.
The company’s U.S. unit, Sprint Corporation, is considered to have contributed to this as it has, for the first time in three years, returned to making a profit. SoftBank’s sales matched analyst predictions as they came in at 2.19 trillion yen, according to a company statement. Presently, Sprint is reportedly back in merger talks with T-Mobile’s US Division.
“Sprint’s earnings are improving as planned and the company could conceivably go it alone. But, in order for the company to grow further, we are considering multiple consolidation options. The negotiations are proceeding apace and we should be able to arrive at a decision soon,” Son stated during the earnings briefing, relating to the alleged merger.
SoftBank’s Fiscal Quarter Results Come with Both Additions and Losses
However, the corporation also reported a loss, which pushed SoftBank’s net income below expectations as it was set to be 5.5 billion yen. The company reported a loss in derivates coming up to 257 billion yen.
This was tied to a financial arrangement set up a year ago and which involved Alibaba Group Holding Ltd. shares. These were sold through a trust to raise funds. However, since the agreement, the Alibaba stock increased by over 80 percent.
SoftBank is also involved in another large scale project, that of creating the SoftBank Vision Fund. Son is looking to create the $100 billion Vision Fund to speed up investments in technology start-ups and give a ‘boost’ to technology. The company reportedly already raised over $93 billion in commitments from various sources. For the first time, SoftBank’s Vision Fund was involved in the company’s fiscal quarter results as a new reportable segment.
The company shares have increased by 16 percent in 2017 and on Monday, they closed at 9,023 yen.
Image Source: Flickr