Softbank Profit Surges, Sprint Makes Turnaround

On Wednesday, Softbank Group posted a jump of 71% in its operating profit during its third quarter as turnaround affords took hold at Sprint.

The company, based in Tokyo, posted operating profit of 295 billion yen for its fiscal third quarter ending in December, in comparison to 172 billion yen for the same period one year ago.

Net profit at Softbank was 91.2 billion yen compared to 2.29 billion yen for the same period one year ago.

The Japanese giant in internet and telecommunications posted overall revenue of 2.3 trillion yen, which was slightly less than the year before when revenue reached 2.38 billion yen.

The quarterly report came as the turnaround efforts at Sprint appear as if they are gaining traction. The mobile carrier in the U.S. was acquired in 2013 for $22 billion by SoftBank and was able to narrow its loss for its third quarter while continuing to increase its overall customer base.

Softbank’s recently ended third quarter was its first full quarter that reflected its ARM Holdings acquisition. That company is a profitable chip maker in Britain that SoftBank acquired during the summer of 2016.

SoftBank’s ARM has technology in over 95% of today’s smartphones. The company said that revenue at ARM for its period of April through December was 138.1 billion yen which was up 8% from the same period one year ago.

Shares at SoftBank soared since its CEO and founder Masayoshi Son had a meeting with Donald Trump the then president-elect last December. Son pledged $50 billion worth of investments as well as 50,000 jobs for the U.S.

SoftBank since that meeting said it would create another 3,000 jobs through its investment in OneWeb a startup satellite internet company and 5,000 new jobs through bringing overseas jobs at Sprint back into the U.S.

The meeting raised hopes as well that under Son plans to merge Sprint with T-Mobile would be revived. He previously had given up hope due to antitrust regulators being opposed to the merger under the previous White House administration.

Son did not say if he remained interested in reviving the merger, but did say he remained opened to options.

SoftBank also is expecting to finish its planned technology investment fund of $100 billion sometime during February. The fund, known as The Vision Fund, is being greatly anticipated by the many tech companies hungry for cash of which many have been relying on investors with deep pockets to delay initial public offerings.

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