IT services firm kicks of SoftBank units' earnings with 41% quarterly profit rise

SB Technology

29/10/2019 07:07

TOKYO, Oct 29 (Reuters) - Japanese IT services firm SB
Technology Corp  4726.T  booked a 41% rise in quarterly profit
on Tuesday, marking the season's first earnings report of dozens
of SoftBank Group Corp  9984.T  units watched for hints about
the parent's financial health.
    The firm, 48% owned by SoftBank Corp  9434.T , reported
operating profit for the three months through September of 794
million yen ($7.29 million) versus 563 million yen in the same
period a year prior. It attributed the rise to a shift from
providing IT consulting for local governments to cloud services.
    The company maintained its full-year profit forecast at 3
billion yen.
    SB Technology's share price has risen almost 8%
year-to-date. In Tuesday trade, it ended down 0.8% whereas the
benchmark Nikkei index  .N225  closed up 0.5%.
    SoftBank founder Masayoshi Son spends much of his time
managing the group's $100 billion Vision Fund while other
businesses, such as Japanese telecoms network operator SoftBank
Corp, are run day to day by trusted managers.
    The entrepreneur has struggled to garner funds for a second
major technology fund following the aborted public offering of
office-rental firm WeWork. SoftBank has pledged $38 billion to
Vision Fund 2, but recent investment setbacks and a shortage of
available cash have cast doubt on that commitment.  urn:newsml:reuters.com:*:nL2N26P05F
    WeWork's parent, The We Company, withdrew the planned
listing after ousting its chief executive officer, Adam Neumann.
That decision put pressure on WeWork to find alternative
funding, with analysts predicting that the company will need
several billion dollars over the next few years.  urn:newsml:reuters.com:*:nL3N26L3US


($1 = 108.9700 yen)

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SoftBank's plans for second mega-fund hit by WeWork debacle   
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WeWork throws in the towel on its ill-fated IPO     urn:newsml:reuters.com:*:nL3N26L3US
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 (Reporting by Tim Kelly; Editing by Christopher Cushing)
 ((tim.kelly@thomsonreuters.com; +813-6441-1311;))