Daily Management Review

SoftBank reports record profits for the year


Japan's SoftBank Group reported its fiscal year 2020, which ended at the end of March.

MIKI Yoshihito
MIKI Yoshihito
Its net profit for the period was 5.1 trillion yen ($46.9 billion), a record annual net profit for a Japanese company. A year earlier, the SoftBank Group reported a loss of 962 billion yen ($8.8 billion). The corporation's 2020 revenues rose 7.4% to 5.6 trillion yen ($51.1 billion).

SoftBank's strong annual results are due to strong investment returns from its Vision Fund investment fund, which generated 6.3 trillion yen ($58 billion) in revenue for the year. Vision Fund's biggest gain came from its 40 per cent stake in South Korean online retailer Coupang, which went public in March, earning 2.6 trillion yen ($23.9 billion) for the year.

A year earlier, the Vision Fund had caused SoftBank's losses due to serious problems with the WeWork co-working service, in which it invested, as well as losses at some other companies in which it held stakes. Last year, shares in most technology companies rose substantially in the face of a pandemic, remote working and so on. In such an environment, shares of SoftBank Group, for which the Vision Fund, which invests in technology corporations, has become a major asset, almost doubled over the year.

source: bloomberg.com