SoftBank drops operating profit measure

Breaking with tradition, SoftBank chose not to disclose operating profit in its quarterly results on Tuesday (August 11).

It said the measure was "not useful" to gauge performance.

Instead it pointed to a $2.8 billion gain at its Vision Fund.

Chief Executive Masayoshi Son has long emphasised the total value of assets as his preferred yardstick.

But the move could further stoke investor complaints about a company long seen as difficult to value.

SoftBank said the $2.80 billion investment gain in the April-June quarter was driven by the sell-down of assets and upwards revaluation of its portfolio.

But Son, who is known for his persistent optimism, said the company was taking a defensive stance during the global health crisis.

"Every day is like a war," he told an earnings briefing. "Cash is the defense for us."

Analysts had expected SoftBank to report a first-quarter operating profit on Tuesday, after three consecutive quarters of loss.

In the last financial year, the Japanese conglomerate plunged to a record loss following huge writedowns at its $100 billion Vision Fund.

But the fund is benefiting from a global rally in tech stocks and demand for listings.

Softbank reported a 12% rise in net income in the first quarter

It's propped up its share price with a massive buyback plan funded by asset sales.

Its shares ended down 2.5% ahead of the earnings announcement.

But the stock has risen almost 140% since March lows.