SoftBank trims annual losses as NAV jumps
Japanese tech investment management giant SoftBank saw shares rise on Monday after reporting a significant drop in full-year losses and a near-doubling in net asset value.
SoftBank recorded a net loss attributable to shareholders of JPY227.6bn ($1.46bn) for the 12 months to 31 March, a JPY742.5bn improvement on the prior year.
The company's main highlight of the year was the blockbuster stock-market debut of Arm Holdings last year, through which it offloaded a 10% stake.
The company, which listed UK-based Arm on the Nasdaq in September, cut its shareholding in the chip designer to 90% for $5.12bn. The proceeds weren't reflected in the profit or loss statement, but $4.65bn was recorded as capital surplus.
However, the soaring price of Arm – which has jumped 79% since its initial public offering to give the company a market. cap of $113bn – helped SoftBank's group net asset value rise to JPY27.79trn, nearly double JPY14.1trn reported at the end of last financial year. Arm accounted for JPY14.36trn of total NAV by 31 March 2024.
The stock was up 1.6% by the end of trade in Tokyo at JPY8,000.