SoftBank announces investment gain as quarterly loss continues
In its fiscal second quarter, SoftBank, led by Founder Masayoshi Son, reported an investment gain on its Vision Fund, marking the second consecutive quarter of gains for the company. However, SoftBank also booked another quarterly loss, with net sales standing at 1.67 trillion Japanese yen ($11 billion) against an expected 1.6 trillion yen and a net loss of 931.1 billion yen ($6.2 billion) compared to an expected loss of 114.1 billion yen, LSEG estimates revealed.
For the first half of the fiscal year, SoftBank experienced a 1.41 trillion yen loss ($9.3 billion), a significant drop from the 3 trillion yen profit the company posted during the same period the previous year. SoftBank cited a weaker yen as a contributing factor, affecting the company due to its substantial U.S.-dollar denominated liabilities.
While SoftBank’s Vision Fund posted an investment gain of 21.3 billion yen, offsetting some of the previous losses, the company continues to face challenges, with some of its invested companies, including Chinese artificial intelligence firm SenseTime, experiencing a decline in value.
This news comes after a challenging fiscal year that saw SoftBank’s Vision Fund posting a record loss of around $32 billion. A slump in tech stock prices and complications with some of SoftBank’s investments in China was attributed to the major loss.
Following the difficult year, SoftBank’s Vision Fund revealed early signs of growth with its first investment gain in five consecutive quarters noted in the June quarter, signaling a potential turnaround. This aligns with a broader recovery in technology stock prices.
In the midst of these developments, SoftBank founder Masayoshi Son has shifted the company’s strategy from “defense” to “offense” mode, focusing on the potential of artificial intelligence technology. Additionally, chip designer Arm, which was acquired by SoftBank in 2016, went public in the U.S during the company’s fiscal second quarter, marking an important milestone for the company.
Despite the progress, Arm reported its first set of results since its IPO, showing an annual rise in revenue for the September quarter. However, its guidance for the December quarter disappointed investors, leading to a drop in its share prices in after-hours trade in the U.S.
The performance of SoftBank and its investments remains a topic of interest and concern as the company navigates through a challenging and dynamic business landscape.
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