Home Stock & SharesBanks Strong domestic telecoms business pushes SoftBank second-quarter profit up 6.8 per cent

Strong domestic telecoms business pushes SoftBank second-quarter profit up 6.8 per cent

by Jonathan Adams

A strong performance by Japan’s domestic telecom business has pushed up the operating profit of SoftBank Group Corp by 6.8% for the second quarter; it was reported on Monday,

SoftBank’s biggest overseas takeover

SoftBank has bought ARM (UK’s most valuable technology company and chip designer company) in September for $32 billion, in what is termed to be Japan’s biggest international deal. The company’s second quarter profit rose from 313.4 billion yen to 334.7 billion yen in a year.

Gains by sprint

Another positive factor has been the earnings registered by Sprint, owned 83% by SoftBanks. Sprint came back with a profit in the last quarter, strong net additions in postpaid phone subscribers and a record-low cancellation rate.

Plans by SoftBank

SoftBank is focusing on new investment areas, although experts are worried because the company is under a huge debt of $112 billion. SoftBank and Saudi Arabia plan to create a technology investment fund with a growing potential of at least 100 billion.

SoftBank intends to make the fund at least worth $25 billion, the world’s largest private equity and a top technology brand. “Our investments were previously confined to our balance sheet,” founder and Chairman Masayoshi Son said at an earnings briefing.

“By creating the new fund, we would be better positioned to leverage the coming opportunities.”

This article is for information purposes only.
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