SoftBank reported a 39% YoY fall in its Q1 net income to $6.9bn while revenues rose 16% to $13.4bn. SoftBank’s earnings showed unrealized gains from the listing of portfolio companies Didi, DoorDash, Full Truck Alliance and Dingdong, though shares plunged last month. Gains from the above companies offset a fall in the value of Coupang, Seer, KE Holdings and others. Alibaba, one of SoftBank’s big investments was hit with a $2.89bn fine by Chinese regulators in April and Didi was removed from app stores on data protection issues. Mint notes that SoftBank’s biggest loss came outside the Vision Fund with Alibaba’s shares dropping last month. Alibaba accounted for 47% of SoftBank’s net asset value as of June. Chinese start-ups account for 23% of the SoftBank Vision Fund’s portfolio at fair value as per FT. Since April, CEO Masayoshi Son has said that only 11% of incremental investments went into China. Son added the SoftBank “want[s] to wait and see how things go” with respect to new large investments in China in the near future. SoftBank also no longer lists Facebook, Microsoft, Alphabet or Netflix among investments in its statement, suggesting an exit from tech-heavy stocks despite the continued rise in the Nasdaq.
SoftBank’s dollar bonds were stable – its 6.875% Perp was at 102.9, yielding 6.3%
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