Japan's SoftBank reports 39% fall in Q1 net profit

TOKYO: Japan's SoftBank Group Corp on Tuesday reported a 39% fall in first-quarter net profit, even as Vision Fund returns were boosted by listings during the period.

April-June profit was 762 billion yen ($6.9 billion). That compared with profit of 1.3 trillion yen in the same period a year earlier.

The Japanese conglomerate posted record annual profit in May with executives pointing to further upside from Vision Fund investments like Chinese ride-hailing firm Didi Global Inc and "Uber for trucks" startup Full Truck Alliance Co Ltd.


Those companies listed in New York during the quarter but Chinese regulatory action has subsequently hammered valuations, underscoring SoftBank's China risk even as the group seeks to reduce its dependence on its largest asset, Chinese e-commerce giant Alibaba Group Holding Ltd.

The turmoil is clouding the outlook for the group, whose shares have slipped a third from two-decade highs in March amid a record 2.5 trillion yen buyback which has since been completed. Shares closed up 0.9% ahead of earnings.