TOKYO (AFP) – Japanese investment giant SoftBank Group reported yesterday a surprise net loss of more than USD3 billion in the first quarter as it was hit by a drop in the share prices of major holdings as well as a weaker yen.
The firm has made huge bets to find and grow hot new tech ventures around the world, but that has left its earnings vulnerable to market forces.
Results have lurched between dizzying highs and lows in recent years, with China’s crackdown on its tech sector taking a toll on the company.
And yesterday it said it lost an eye-watering JPY477.6 billion (USD3.3 billion) in the three months to June, badly missing a JPY73 billion profit forecast by analysts in a Bloomberg News survey.
The company suffered investment losses “due to declines in the share prices of Alibaba, Deutsche Telekom, and T-Mobile US”, it said in a statement.
SoftBank’s Vision Fund investment unit, however, swung to profit after five straight quarters of losses.
SoftBank Group is going through a broad rethink to restore its financial health after taking a heavy hit from global economic disruptions caused by the pandemic.
It is moving to list British semiconductor firm Arm in New York while selling down its stake in Alibaba.
