SoftBank Reports Robust Q3; Uber, DoorDash Drive Vision Fund Investment Value

SoftBank Group Corp’s (OTC: SFTBY) revenue rose 10.7% to ¥1.507 trillion during the third quarter of FY20.
SoftBank and Arm segments reported 10.7% and 6.3% revenue growth, respectively, following the pandemic induced robust demand for Arm technology, 5G smartphones, networking equipment, and server shipment.
Gross profit rose 8% to ¥0.748 trillion with a margin compression of 124 basis points.
Gain on investments stood at ¥1.766 trillion, aided by a profit on the partial sale of T-Mobile US Inc (NASDAQ: TMUS) shares, unrealized valuation gain from strong price performance from DoorDash Inc (NYSE: DASH) and Uber Technologies Inc (NYSE: UBER), versus a loss of ¥84.179 billion in the year-ago period.
As a result, net income grew 880% to ¥1.217 trillion as Sprint ceased to be the subsidiary upon its merger with T-Mobile.
EPS rose 27-fold to ¥575.55.
Last year March, SoftBank had disclosed divestment plans worth ¥4.5 trillion (including a partial stake in Alibaba Group Holding Ltd (NYSE: BABA), T-Mobile US Inc., and the Japan telecom unit SoftBank Corp., including an agreement to divest Arm Ltd. to Nvidia Corp. (NASDAQ: NVDA) for $40 billion) to repay debt and initiate a share buyback.
The Company completed the sale or monetization of the target amount of ¥4.5trillion of the assets as of the second quarter-end. For the six months from April to September 2020, the amount of sale or monetization of assets totaled ¥5.6 trillion.
Cash flows from operating activities reduced ¥0.696 trillion during the nine months ended December 31, 2020, following significant derivative losses primarily contributed by SB Northstar.
SoftBank bought back ¥1.1 trillion shares as of December 31, 2020. It also repurchased corporate bonds with a face value of ¥167.6 billion and repaid in advance ¥300 billion of a senior loan by September 30, 2020.
Price action: SFTBY share are trading higher by 8.2% at $46.49 on the last check Monday.

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