SoftBank Group Corp.\u2019s net profit fell 18 percent in its fiscal first quarter, dragged down by mounting costs even as the Japanese conglomerate accelerated its massive capital outlay into artificial intelligence and emerging technologies.<\/p>\n
Net income for the April-June quarter dropped to 347.3 billion yen ($2.2 billion) from 421.8 billion yen during the same period a year earlier. The profit decline occurred despite an 11 percent increase in quarterly sales, which reached 2 trillion yen ($12.7 billion).<\/p>\n
Shares in Tokyo closed 4 percent lower following the earnings announcement, reflecting market pressure over rising expenses alongside speculative investments.<\/p>\n
Addressing the firm’s operating momentum, Chief Financial Officer Yoshimitsu Goto told reporters that its business with Arm, a British semiconductor and software design company, was doing well. Goto noted that SoftBank has invested an additional $20 billion in OpenAI<\/a> and plans more investments in the current fiscal year, he said.<\/p>\n Under Chief Executive Masayoshi Son, who founded the company in 1981, SoftBank has aggressively transitioned from internet services into futuristic hardware, energy, and AI infrastructure. Son\u2019s latest strategic priorities include expanding into autonomous driving and automation ventures such as ABB Robotics, which focuses on robotics, robotic arms, and mobility.<\/p>\n The underlying volatility of the company\u2019s quarterly performance stems from its Vision Fund investments in early-stage technologies. SoftBank\u2019s global portfolio includes TikTok parent ByteDance, U.S. chip maker Intel Corp., Taiwan Semiconductor Manufacturing Company, or TSMC, and Japanese mobile payment provider PayPay.<\/p>\n SoftBank Group does not give annual forecasts.<\/p>\n