SoftBank Group has reported a record $36.99 billion U.S. quarterly profit.
The record profit was the result of a fourth-quarter investment gain on e-commerce firm Coupang’s stock by SoftBank’s Vision Fund and comes after a loss a year earlier. The latest results represent the biggest quarterly profit ever for a Japanese company.
Market enthusiasm for technology stocks drove the public listing of SoftBank-backed Coupang and used-car trading platform Auto1 Group during the most recent quarter, as well as the rising share price of ride-hailing firm Uber.
Much of Vision Fund's gain, however, is on paper with the value of the portfolio locked up in the stock market amid concerns over frothy valuations and a boom in special purpose acquisition companies (SPACs), which has drawn scrutiny from regulators.
The total fair value of the Vision Fund was $154 billion U.S. at the end of March, with SoftBank distributing $22.3 billion U.S. to its limited partners.
Two of SoftBank's highest profile bets, space sharing firm WeWork and ride-hailing firm Grab, have outlined plans to list on stock exchanges via SPAC reverse mergers, with Vision Fund reportedly in talks to use its own SPAC to list portfolio company Mapbox.
SoftBank has also completed a $23 billion U.S. share buyback program launched last year that helped to push its stock price to two-decade highs in March of this year.
