SoftBank Group has announced its first quarterly net profit in over a year, largely driven by improvements in its tech investment funds business. The Japanese technology investment company revealed a net profit of 950.00 billion yen ($6.41 billion) for the three-month period ending on December 31st, marking a significant turnaround following four consecutive quarters of net losses.
Previously, SoftBank Group's start-up investments suffered losses in 2023 due to central banks raising rates to combat inflation, resulting in selloffs within the tech sector. However, the company has now seen a notable recovery, with its fiscal third-quarter net profit surpassing the previous year's figure of a Y783.415 billion net loss.
SoftBank Group's Vision Funds business significantly contributed to the positive result, recording a profit of Y422.74 billion in the third quarter, compared to the same period the previous year when it experienced a loss of Y660.10 billion.
Following this news, SoftBank Group's shares soared by 11% on Thursday. The surge was also attributed to the better-than-expected outlook of Arm Holdings, one of SoftBank Group's chip-designer units listed in the U.S.