Softbank - Will the Vision Fund shine again?

JP_mykayaplus wrote a column · Aug 9, 2023 12:21

Softbank - Will the Vision Fund shine again?

$SoftBank Group (9984.JP)$ released its latest quarterly results. Many might not be familiar with how accounting works, so let's do a quick review of how to study Softbank Group's results.

1. SoftBank Group's main business is in mobile services and e-commerce

Source: Softbank website

In the Consumer segment, the Company provides services, such as mobile services, broadband services, and electricity services to individual customers in Japan. The Company procures mobile devices from mobile device manufacturers and sells the mobile devices to distributors operating SoftBank shops, etc., and individual customers.

Source: Softbank Q1'23 financial results

Segment income was ¥ 254,987 million, an increase of ¥ 32,773 million (14.7%) year on year. This was mainly due to increases in income in the Media & EC business (formerly the Yahoo! JAPAN/LINE business) and the enterprise business, despite a decrease in income in the consumer business.

2. It then invests its cash into equity and creates funds

Similar to what $Berkshire Hathaway-A (BRK.A.US)$ $Berkshire Hathaway-B (BRK.B.US)$ is doing, proceeds from its core business will then be invested into equity and creating funds.

Source: Earnings results for Softbank Group

Softbank's investments are mainly into telco and internet companies like $Alibaba (BABA.US)$ $BABA-W (09988.HK)$, $T-Mobile US (TMUS.US)$ Arm and other funds.

Source: Softbank Q1'23 financial results

Investments losses narrowed for Q1'23, helping the company achieve a narrower loss become income tax.

Visit mykayaplus.com for more investing-related content!

DISCLAIMER
The information available in this article/report/analysis is for sharing and education purposes only. This is neither a recommendation to purchase or sell any of the shares, securities, or other instruments mentioned; nor can it be treated as professional advice to buy, sell or take a position in any shares, securities, or other instruments. If you need specific investment advice, please consult the relevant professional investment advice and/or for study or research only.

Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more

Translate

Report

71K Views

Comment

JP_mykayaplus

Co-founder, chief editor and analyst of mykayaplus.com

6945

Followers

Following

8109

Visitors