Japan's SoftBank posts quarterly profit after four straight losses, driven by Vision Fund gains

SoftBank posted its first quarterly profit after four quarters of losses, smashing through analyst estimates, driven by massive gains at its flagship tech investment arm, the Vision Fund.

Here's how SoftBank did in the December quarter against LSEG estimates:

SoftBank's flagship tech investment arm had a rough time in the fiscal year that ended in March last year, posting a record loss of around $32 billion amid a slump in tech stock prices and the souring of some of the business' bets in China.

In the June quarter of 2023, the Vision Fund posted its first investment gain in five consecutive quarters, signalling early signs of fresh growth that coincided with recoveries in the prices of technology stocks.

In 2022, SoftBank founder Masayoshi Son said the firm would go into "defense" mode, slowing the pace of its investment and adopting a more cautious approach. In June, Son flagged a shift into "offense" mode, touting his excitement around the potential of artificial intelligence technology. Vision Fund is exposed to AI through investments in companies like China's SenseTime.

Last year, SoftBank's majority-owned chip designer Arm went public in the U.S. The British firm was acquired by SoftBank in 2016 for around $32 billion at the time, and an initial public offering of Arm valued the company at over $50 billion.