TOKYO (AFP) – Investment giant Softbank Group yesterday reported an annual net profit of USD45.8 billion, the best ever for a Japanese company, reaping the rewards of tech share rallies to recover from last year’s record loss.
The telecoms-firm-turned-investment-behemoth has poured money into some of Silicon Valley’s biggest names and hottest new ventures from artificial intelligence (AI) to biotech through its USD100-billion Vision Fund.
“The technology sector, where the company focusses its investment strategies, has been positively impacted by the accelerated adoption of digital services to address the pandemic,” SoftBank said in a statement.
“However, there is no guarantee that the current positive impact will be sustained in light of uncertainties associated with the pandemic.”
Net profit for 2020-21 was JPY4.99 trillion, exceeding its own target and putting it in the ranks of the world’s most profitable companies.
In 2019-20, SoftBank reported a net loss of JPY961.6 billion – its worst ever – as the start of the pandemic compounded woes caused by its investment in troubled office-sharing start-up WeWork.
But it quickly returned to profit as the impact of COVID-19 lockdowns worked largely in its favour.
