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Softbank reports annual profits of Japanese companies to record highs

Tokyo-

Softbank Group Co., Ltd.

9984 -3.45%

Riding on a series of blockbuster initial public offerings, it broke the profit record in its home country and reached an annual net profit of 4.99 trillion yen. This is a record high of $ 45.9 billion for a Japanese company.

Results, including a record profit of JPY 1.93 trillion for the quarter ending in March, conclude the wild year of Japanese tech investors riding the roller coaster stock market from the initial lows of the pandemic to the recent highs.

This figure is primarily due to the $ 100 billion Vision Fund and its successor, an annual return of 6.29 trillion yen, and its portfolio companies are skyrocketing as the stock market soars. The biggest victory for the Vision Fund was a return on investment of 2.6 trillion yen from a nearly 40% stake in a Korean e-commerce company.

Coupang Co., Ltd.

this Listed in March.. Softbank also recorded a profit of 945.9 billion yen. Last year’s sale US telecommunications company Sprint Corp. Control and the value of the remaining holdings.

SoftBank said it tripled the size of the capital promised to the Second Vision Fund to $ 30 billion in a strong return.

Softbank’s share price closed at 9,180 yen on Wednesday, almost doubling the price a year ago.

SoftBank’s headaches are the biggest test to date of a few years ago when CEO Masayoshi Son decided to shift the conglomerate’s core business from telecommunications to technology investment. The company costs billions of dollars In 2019 and early 2020.

Softbank’s fiscal year profit is about double

Toyota Motor Corp.

According to data from S & P Global Market Intelligence, it is the highest record for a Japanese company to date.It puts Softbank revenue in a league with tech stars like Google’s parents

Alphabet Co., Ltd.

Or

Microsoft Co., Ltd.

, Its annual profit record is in the $ 40 billion range, data shows.

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As a result, Mr. Son missed the time when Softbank was launched in a small town in southern Japan in 1981, and dreamed of creating a company that would generate trillions of yen in profits and profits. At a press conference in Tokyo, he stood in front of a black-and-white photo of a town intersection and said, “I can finally count my income and profits.” “This photo shows SoftBank’s 40-year history.”

SoftBank has spent most of the past year selling assets, hoarding cash, and more recently accumulating return on investment due to the surge in the global public market.

In one of the first moves early last year, the company announced a repurchase plan of a whopping 2.5 trillion yen. Treasury stock— At that time, it was 45% of the inventory — in just over a year. Softbank said Wednesday that the repurchase was virtually complete. Investors believe that SoftBank’s share price has risen just below record highs, and many want to continue buying back.

Softbank has recently accelerated its investment pace after a trading delay of about a year and a half. This is primarily through the second Vision Fund, which the company has independently funded after failing to attract outside investors.

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Write to Phred Dvorak at phred.dvorak@wsj.com

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Softbank reports annual profits of Japanese companies to record highs

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