TOKYO (AP) – Japanese technology giant SoftBank Group Corp.’s said Tuesday that its profit rose 12% in April-June from a year earlier as its investments added to its coffers, including sales of its shares in U.S. carrier T-Mobile.
Tokyo-based SoftBank reported Tuesday a fiscal first quarter profit of 1.2 trillion yen ($11.5 billion), up from 1.1 trillion yen in the previous fiscal year.
Quarterly sales inched down 2% to 1.45 trillion yen ($13.7 billion).
SoftBank, whose group includes the carrier that introduced the iPhone to Japan, said it has been shoring up its cash reserves, acknowledged it was worried about a second or third wave of the coronavirus pandemic.
The company compared the crisis to the hard times of the Great Depression of the late 1920s and early 1930s.
SoftBank announced last month that it’s setting up a new subsidiary company to carry out coronavirus tests and will start giving them first to its employees and members of the SoftBank Hawks professional baseball team.
SoftBank got a lift from U.S. carrier Sprint’s merger with T-Mobile, a deal in the works for a few years that was finally completed in April. That means Sprint is no longer part of SoftBank’s group or earnings.
SoftBank also benefited from its Vision Fund investments, as it sold parts of its global portfolio, and stock prices of its holdings recovered, it said.
Analysts have constantly expressed doubts about some of the investments. But even global office-space sharing company WeWork may be doing better than expected thanks to the expansion of remote working.
Japanese homes tend to be small and Japanese tend to be preoccupied with appearances and prefer office-like environments.
WeWork just opened in a new locale in Japan, in northern Sendai. It already operates in Tokyo, as well as Nagoya, Fukuoka and other urban areas in Japan.
SoftBank made a loss in the fiscal year that ended in March. It did not give a projection for the current fiscal year that ends in March 2021.
Yuri Kageyama is on Twitter https://twitter.com/yurikageyama
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