SoftBank Posts US$46bn Annual Profit, Highest By A Japanese Company


  • SoftBank's full-year net profit soared to 4.99 trillion yen or US$46 billion, the highest for any Japanese company to date.
  • SoftBank's profit surpassed Microsoft's record annual net profit of US$44.28 billion for its fiscal year ended June.
  • The record net profit underlines the company's strategic shift from telecommunication business to tech investment, which proved immensely helpful.

Japanese conglomerate SoftBank Group Corp.'s full-year net profit soared to 4.99 trillion yen or US$46 billion, the highest for any Japanese company to date, thanks to its investments in tech companies and successful initial public offerings (IPOs).

Its income of 1.93 trillion yen in the quarter ended March 31, 2021, was also a record for any Japanese company. Its share prices doubled in the last one year to 9180 yen on Wednesday.

SoftBank's profit surpassed Microsoft's annual net profit of US$44.28 billion for the fiscal year ended June. It also surged past Toyota Motors' record yearly profit of 2.49 trillion yen in 2017.

Pic Credit: Pixabay.

Also Read: SoftBank Q3 Net Profit Swells to $11 Billion On The Back Of Vision Funds

How did SoftBank achieve a record net profit?

SoftBank's US$100 billion Vision Fund earned 6.29 trillion yen in profit after its stock market valuation surged. Of the 125 Vision Fund companies, 14 went public this year.

Also, SoftBank has infused a significant amount into Vision Fund 2 after it failed to attract investors. Its investments in the fund rose from US$20 billion to US$30 billion.

Besides, its investment in tech companies proved beneficial. SoftBank invested heavily in Coupang Inc., the online retailer in South Korea, and DoorDash, the US food delivery service system, which helped it earn huge profits after going public.

Also Read: SoftBank Files IPO For 2 New SPACs

Auto1 Group SE, the wholesale platform for used cars in Germany, accrued US$ 1.8 billion for SoftBank after it went public in February. The robust stock growth of SoftBank invested technology companies during the pandemic helped it earn higher returns.

However, in 2019, it had registered a loss of 961.58-billion yen, driven by losses in WeCo, the operator of We Work, the shared workplace provider in the US. In 2020, it recorded a net profit of 5.63 trillion yen, which was 7.4% higher than the previous year.

Also Read: SoftBank Group floats blank check company for special acquisition

How its investment strategy worked?

The record net profit in the current fiscal year underlines the company's strategic shift from telecommunication business to tech investment which proved immensely helpful.

SoftBank, founded in 1982 in a small town in southern Japan by Masayoshi Son, its chief executive, is now in the same league of tech giants like Microsoft and Alphabet, the parent company of Google in terms of net annual profit.

Last year, the company announced that it would buy back its shares worth 2.5 trillion yen, a staggering 45% of the company's total shares at that time.

Also Read: SoftBank Collects C$20Bn from Shareholders for Its New Equities Trading Arm

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK