Tech investment funds business improvement drives profit

  • SoftBank Group reports first quarterly net profit in over a year
  • Net profit of 950.00 billion yen ($6.41 billion) for Q3
  • Improvement in tech investment funds business contributes to profit
  • Vision Funds business posts profit of Y422.74 billion in Q3
  • SoftBank Group shares rise 11% after positive outlook from Arm Holdings

SoftBank Group has reported its first quarterly net profit in more than a year, thanks in part to an improvement in its tech investment funds business. The Japanese technology investment company posted a net profit of 950.00 billion yen ($6.41 billion) for the three months ended December 31, 2023, following four consecutive quarters of net losses. SoftBank Group’s start-up investments had suffered losses earlier in the year due to central banks raising rates to rein in inflation, causing selloffs in the tech sector. However, the fiscal third-quarter net profit of 950.00 billion yen surpassed the Y783.415 billion net loss in the year-earlier period and exceeded the estimated Y247.25 billion net profit in a poll of analysts. The Vision Funds business also contributed to the positive results, posting a profit of Y422.74 billion in the third quarter, compared to a loss of Y660.10 billion in the same period last year. Following the announcement, SoftBank Group shares rose 11% on Thursday, driven by the positive outlook from its chip-designer unit, Arm Holdings.

Public Companies: SoftBank Group (9984.TO), Arm Holdings (undefined)
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Factuality Level: 7
Justification: The article provides specific financial figures and compares them to previous periods, indicating a positive turnaround for SoftBank Group. It also mentions the reason for the previous losses and the improvement in the tech investment funds business. However, the article lacks in-depth analysis and context, and it does not provide any opposing viewpoints or potential risks for SoftBank Group’s future performance.

Noise Level: 7
Justification: The article provides some relevant information about SoftBank Group’s quarterly net profit and the improvement in its tech investment funds business. However, it lacks in-depth analysis, scientific rigor, and evidence to support its claims. It also does not explore the consequences of SoftBank Group’s decisions on those who bear the risks or provide actionable insights or solutions. Additionally, the article includes some repetitive information and does not stay focused on the main topic.

Financial Relevance: Yes
Financial Markets Impacted: SoftBank Group and its tech investment funds business

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to SoftBank Group’s financial performance and its tech investment funds business. There is no mention of an extreme event.

Reported publicly: www.marketwatch.com