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SoftBank Group logs record-high net profit for Japan firm in 2020
SoftBank Group broke the previous record of 2.49 trillion yen in net profit logged by Toyota Motor in fiscal 2017, according to data provided by Nomura Securities.
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The logo of SoftBank Group Corp is displayed at SoftBank World 2017 conference in Tokyo, Japan, July 20, 2017. (Reuters/Issei Kato)
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oftBank Group 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 in fiscal 2017, according to data provided by Nomura Securities.
SoftBank Group's annual net profit exceeded US software giant Microsoft Corp.'s $44.28 billion net income in the business year ended in June and other tech giants' latest yearly profits such as Facebook and Amazon.com.
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 US shared workplace provider We Work.
SoftBank Group, however, remained vulnerable to changes in global stock markets as its businesses continue to focus on investments in tech firms.
In fiscal 2020, the company 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. and US food delivery service operator DoorDash.
Robust recovery of global stock markets despite the novel coronavirus pandemic also increased the stock valuation of its invested tech companies, according to the Japanese company.
SoftBank Group said its investments in fiscal 2020 earned a profit of 7.53 trillion yen.
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 US ride-hailing service operator Uber Technologies Inc.
The company said its Vision Fund 1 and Vision Fund 2 globally invested in 125 companies in total, with 14 of them having gone public by the end of March.
SoftBank Group did not provide earnings on an operating basis or a full-year outlook for fiscal 2021.
