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SoftBank made a quarterly net profit of ¥231bn ($1.5bn) as the Japanese conglomerate benefited from Arm’s surging valuation while building a war chest for its push into artificial intelligence.
The results in the quarter to the end of March beat analysts’ expectations of a profit of ¥23.3bn, according to S&P Capital IQ.
However, the fourth-quarter results did not make up for a weak start to the year, with the group falling to a full-year net loss of ¥227.6bn.
The group’s tech-heavy Vision Funds made a quarterly investment loss of ¥57.5bn, having recorded gains in each of the preceding periods this fiscal year.
Despite the full-year loss, analysts and investors are increasingly confident that SoftBank founder Masayoshi Son is likely to develop an AI strategy based around UK chip designer Arm.
Last year, Son said the company was ready to go on the “counteroffensive” after nearly three years of asset sales and hoarding cash.
SoftBank last made an annual profit in the fiscal year ending March 2021, when the Covid-19 pandemic supercharged tech stocks.