Japan's SoftBank says Q1 profit jumps 50.1% after inclusion of Vision Fund

[TOKYO] Japan's SoftBank Group Corp on Monday reported a 50.1 per cent rise in first-quarter operating profit, after the company included Vision Fund, the world's largest private equity fund, as a new reportable segment and booked a valuation gain.

The internet and telecoms giant said profit for the quarter through June increased to 479.2 billion yen (S$5.88 billion).

SoftBank has not released a forecast for the current business year ending March, saying there are too many uncertain factors.

Thomson Reuters Starmine SmartEstimate puts full-year profit at 1.16 trillion yen, based on the estimates of 20 analysts.

SoftBank is a prolific investor in technology startups, with founder and chief executive officer Masayoshi Son instrumental in creating Vision Fund.

Recent investments include US online lender Kabbage Inc, which on Thursday said it had received a US$250 million from SoftBank.

SoftBank also has a foothold in the US market through its wireless unit Sprint Corp, which last week reported a quarterly profit for the first time in three years as a results of cost cutting efforts.

The fourth-biggest US wireless carrier by subscribers is exploring options to boost finances and better compete, through means such as merging with T-Mobile US Inc as well as a tie-up with cable provider Charter Communications Inc.

REUTERS