- Shares were up over 9 percent after U.S. carrier reported
- SoftBank closely tracks shares of its No. 2 overseas holding
SoftBank Group Corp. surged in Tokyo after its U.S. carrier Sprint Corp. reported a smaller-than-expected quarterly loss.
The Japanese company, whose stock has moved recently in tandem with that of its second-largest overseas holding, climbed 7 percent to 5,187 yen at the close.
Sprint on Tuesday increased its profit forecast after recording a quarterly net loss of 21 cents a share, compared with projections for 26 cents. The company also boosted its cash and equivalents, helping overshadow shortfalls in sales and total subscriber gains compared with estimates.
SoftBank’s shares fell last week to their lowest since buying Sprint in 2013 amid mounting pessimism billionaire Masayoshi Son can turn around the money-losing U.S. carrier. Son has said he already sees “light at the end of the tunnel” for a company that booked has booked six straight quarterly net losses.
SoftBank’s stake in Sprint was valued a 1.2 trillion yen on the company’s website. It’s the second largest overseas investment after Alibaba Group Holding Ltd., which SoftBank valued at 6.6 trillion yen.