SoftBank posts record net loss of nearly 23 billion euros in Q1


SoftBank posts record net loss of nearly 23 billion euros in Q1 |  Photo credit: Shutterstock

SoftBank posts record net loss of nearly 23 billion euros in Q1 | Photo credit: Shutterstock

by Sam Nussey

TOKYO, Aug 8 (Reuters) – SoftBank on Monday reported a net loss of nearly 23 billion euros in the April-June quarter, penalized by its Vision Fund business which suffered from the drop in technology stocks.

SoftBank recorded a record loss in May for Vision Fund, its main investment vehicle, due in particular to the decline in Chinese high-tech stocks linked to the tightening of the sector’s supervision by Beijing.

The decline in the value of SoftBank’s investment portfolio led it to a net loss of 3.162 billion yen (22.96 billion euros) in the first quarter, compared to a profit of 761.5 billion yen recorded in the first quarter. during the same period the previous year.

SoftBank founder and chief executive Masayoshi Son, who will speak at an earnings conference, pledged to tighten investment criteria and preserve cash to weather the crisis.

SoftBank said it recorded a loss of 296 billion yen on the value of the private investments of its two Vision Funds. Analysts said private asset writedowns were unlikely to reflect the extent of current market weakness.

Falling IPO volumes and market skepticism of start-ups have dried up an important source of capital for SoftBank, which is hoping for an IPO for chip designer Arm after the failed bid. a sale to Nvidia.

To raise funds, SoftBank pulled out of companies such as Uber and door-to-door shopping platform Opendoor Technologies, for a total gain of $5.6 billion.

SoftBank sold Uber at an average price of $41.47 per share, down from a closing price of $32.01 on Friday. (Report Sam Nussey; French version Valentine Baldassari, edited by Kate Entringer)





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