SoftBank Group bounced back from a record annual loss with a JPY1.3 trillion ($12.3 billion) profit in its fiscal Q1 (to end-June) on a gain relating to its sale of T-Mobile US shares, Vision Fund investment income and asset sales.

Profit was up 11.9 per cent year-on-year, on sales of JPY1.4 trillion, down 2 per cent.

The results included income of JPY736.4 billion from the discontinued operations of Sprint, as well as JPY686 in gains on investments, including the sale of shares in T-Mobile and SoftBank Corp. Sprint and T-Mobile completed a merger on 1 April.

SoftBank’s $100 billion Vision Fund recorded investment gains of JPY296.6 billion.

The group said it sold or monetised JPY4.3 trillion of assets as of 3 August through the partial sale of T-Mobile shares; borrowing using T-Mobile shares; prepaid forward contracts using Alibaba shares; and partial sale of SoftBank Corp shares. It also repurchased shares valued at JPY101.7 billion in June, with additional shares worth JPY398.3 billion this month.

Arm results
Revenue increased 7.1 per cent to JPY49.2 billion, but the chip design company reported a pre-tax loss of JPY13.3 billion compared with JPY11.2 billion in the 2019 quarter due to higher R&D costs.

Royalty revenue increased 17.5 per cent in US dollar terms, led by an increase in shipments of 5G smartphones and networking equipment. Technology licensing revenue fell 2.4 per cent due to increased uncertainty in the semiconductor industry from the impact of Covid-19 (coronavirus).

In mid-July SoftBank Group reportedly was looking to add Arm to the list of assets being offloaded to raise cash.