Lead the action, SoftBank Group’s first quarter profit drops 4%

SoftBank said on Wednesday its operating profit on the Saudi-backed Vision Fund rose 66% to 397.6 billion yen for the first quarter ended June.

Japan’s SoftBank Group Corp. posted better-than-expected quarterly operating profit after seeing a jump in its Vision Fund’s $ 100 billion investment return.

The group’s results have been increasingly volatile as founder and Chief Executive Officer Masayoshi Son focuses on predictable telecom earnings in favor of betting, through its mega fund, on fast-growing startups with shifting valuations.

Most of the Vision Fund’s profits are paper profits, with its unrealized first-quarter profits totaling 604 billion yen.

The $ 66.3 billion investment of the fund in 81 firms is now worth $ 82.2 billion, the group added, as the value of its bets on firms such as OYO hotel chain and Doordash delivery service increased.

However, this was offset by 195 billion yen in unrealized losses from a decline in the value of its stake in firms like Uber greeting firm that is trading below its IPO price.

The tech giant’s first-quarter investor operating profit was 688.8 billion yen, down 3.7 percent from a year ago when results were expected from a stake sale in China’s chip maker Arm’s business.

Recent results exceeded an estimate of 336 billion yen by five analysts compiled by Refinitiv.

The results come as SoftBank prepares to launch a second Vision fund, which it said last week has secured $ 108 billion in pledges.

SoftBank plans to commit $ 38 billion to the new fund. It will rely on proceeds from the First Vision Fund to bankrupt the contribution, a source told Reuters.

CEO Son will speak at a press conference from 1600 local time./Investing.com

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