SoftBank Japan Reports First Net Profit in 4 Years Amid Improved Investment Performance

# SoftBank Group Achieves First Profit in Four Years, Reports $7.7 Billion Net Income for Fiscal Year 2024 SoftBank Group (SBG) declared on November 13 that it netted a profit of ¥1.1533 trillion (approximately $7.7 billion) for the fiscal year 2024, spanning April 2024 to March 2025. This marks a significant reversal from a ¥227.6 billion loss in the previous fiscal year and is the company's first profit since fiscal 2020. This profitability surge was mainly driven by the enhanced performance of its subsidiary investment funds. NHK noted, "The rising stock prices of companies supported by SoftBank's major investment funds bolstered the group's overall outcomes." SBG's investment operations alone recorded a gain of ¥3.7 trillion during the fiscal year. Notable contributors to this financial success included the improved share prices of holdings like Chinese ride-hailing giant Didi Chuxing. Additionally, significant valuation increases in stocks of non-listed investment targets, such as China’s ByteDance, played a crucial role in enhancing the group’s gains. # Uncertain Projections for Fiscal Year 2025 Despite this robust fiscal performance, SBG withheld consolidated financial projections for fiscal year 2025, citing significant uncertainties that make accurate forecasting challenging. Following the announcement on November 13, SBG shares on the Tokyo Stock Exchange closed up by 93 points (1.24%) at ¥7,600, demonstrating strong investor confidence. # Delay in AI Infrastructure Investment Plans SoftBank continues to focus on its long-term growth strategy, particularly investments in artificial intelligence (AI) infrastructure. However, Bloomberg reported on November 12 that SoftBank’s ambitious $100 billion AI infrastructure investment plan has been delayed. Sources referenced by Bloomberg attributed the delays to challenges in securing funding due to heightened economic uncertainties in the U.S., influenced by former President Donald Trump's tariff policies. These factors have hindered negotiations for capital raising. SoftBank Group is continually refining its strategies to balance investment opportunities in high-growth sectors while navigating global market uncertainties.