SoftBank smashed profit forecasts ahead of its $100 billion fund launch

Yusuf Khan

August 7, 2019 10:35 AM

SoftBank smashed earnings forecasts as its net profits more than tripled in the first quarter.

softbank masayoshi son

The Japanese tech titan's gains were linked to sales of Alibaba shares.
SoftBank is preparing to launch its $100 billion investment fund, and seeking to raise cash from investors including Microsoft, Apple, and Japanese financial groups.
View Markets Insider for more stories.

SoftBank smashed analysts' earnings expectations for the first quarter after it more than tripled net profits to a record $10.6 billion.

The Japanese tech conglomerate holds stakes in Uber, WeWork, Sprint, and other companies. Its outperformance reflected its sale of shares in Chinese online retailer Alibaba.

Masayoshi Son, SoftBank's billionaire founder, is currently looking to raise $108 billion from investors including Apple, Microsoft, and Japanese financial groups as it prepares to launch a new investment fund.

The existing Delta Fund and Saudi-backed Vision Fund generated 58% of the company's operating profit of $6.5 billion in the period, driven by a valuation gain of $3.8 billion.

SoftBank's stake in Uber fell in value, but the decline was offset by the appreciation of its investments in Indian hotel-booking website Oyo, messaging service Slack, and food-delivery startup DoorDash.

As of the end of June, the company's Vision Fund boasted a portfolio of 81 investments valued at $82.2 billion, representing a valuation increase of 24%.

NOW WATCH: 7 lesser-known benefits of Amazon Prime