SoftBank Group logs record-high net profit for Japan firm in FY 2020
Written by tokyoclub on May 12, 2021
SoftBank Group Corp. said Wednesday its net profit in the business year ended March surged to 4.99 trillion yen ($46 billion), the highest level on record for a Japanese company, thanks to its successful investments in tech firms around the world.
SoftBank Group broke the previous record of 2.49 trillion yen in net profit logged by Toyota Motor Corp in fiscal 2017, according to data provided by Nomura Securities Co.
The Japanese investment giant made a dramatic turnaround from a record net loss of 961.58 billion yen in fiscal 2019 as a result of its failed investment in We Co., operator of U.S. shared workplace provider We Work.
In fiscal 2020, SoftBank Group said its sales totaled 5.63 trillion yen, up 7.4 percent from a year earlier.
The surge in net profit was boosted by initial public offerings of some tech firms in which SoftBank Group has invested, including South Korean online retailer Coupang Inc.
Robust recovery of global stock markets despite the novel coronavirus pandemic also increased the stock valuation of its invested tech companies, the company said.
The company’s investment funds, such as the nearly $100 billion Vision Fund, logged a profit of 6.29 trillion yen due to the higher valuation of its stock holdings, including U.S. ride-hailing service operator Uber Technologies Inc.
SoftBank Group did not provide earnings on an operating basis or a full-year outlook for fiscal 2021.