SoftBank Group Reports Unexpected Q1 Loss Amid Investment Challenges
2 Sources
2 Sources
[1]
SoftBank Group GAAP EPS of -¥123.67, revenue of ¥1701.75B
SoftBank Group press release (OTCPK:SFTBY): Q1 GAAP EPS of -¥123.67. Revenue of ¥1701.75B (+9.3% Y/Y). On August 7, 2024, following the first quarter, the Board resolved to repurchase the Company's shares with a maximum of ¥500 billion. The company does not provide forecasts of consolidated results of operations, as they are difficult to project due to numerous uncertainties affecting earnings. More on SoftBank Group SoftBank Group: Massive Discount To NAV Sends A Warning To Tech Investors SoftBank Group Corp. Risks Repeating Past Mistakes SoftBank Group Q4 Earnings Review: High Risk For Low Reward Arm is poised for upside as edge AI emerges, Morgan Stanley says SoftBank buys UK-based AI chipmaker Graphcore
[2]
SoftBank Group Posts Surprise First-Quarter Loss
TOKYO--Japanese technology investor SoftBank Group sank into the red again in the latest quarter, dragged by losses at its main investment vehicle. SoftBank on Wednesday posted a net loss of 174.28 billion yen, equivalent to about $1.21 billion, for its first quarter ended June. That compared with a net loss of Y477.62 billion in the same period a year earlier and the Y86.6 billion net profit expected by analysts in a Visible Alpha poll. The Vision Funds segment posted a business loss of Y204.3 billion, compared with a Y61.04 billion profit in the year-earlier period. After years of playing a defensive strategy, Chief Executive Masayoshi Son has said the company would look for investment opportunities more actively in the field of artificial intelligence. But the outlook remains uncertain due to the recent global stock market turmoil, which has hit the technology sector especially hard. Shares of U.K. chip-designer Arm, SoftBank's subsidiary which Son has been focusing on, has declined nearly 40% from its July peak. Last week, the company left its full-year revenue forecast unchanged while reporting robust revenue for the first quarter. SoftBank's own share price has fallen by about one-third from its peak in July, with the Nikkei Stock Average on Monday recording its worst one-day percentage drop since 1987. Write to Megumi Fujikawa at [email protected]
Share
Share
Copy Link
SoftBank Group, the Japanese tech investment giant, posted a surprise net loss in the first quarter of the fiscal year 2023, despite an increase in revenue. The company faces challenges in its tech investments and Vision Fund performance.
Financial Performance
SoftBank Group, the Japanese multinational conglomerate, has reported its financial results for the first quarter of the fiscal year 2023, revealing an unexpected net loss. The company posted a net loss of ¥477.62 billion ($3.3 billion) for the quarter ended June 30, 2023, a significant downturn from the ¥3.16 trillion profit recorded in the same period last year
1
.Despite the loss, SoftBank's revenue showed an increase, reaching ¥1.67 trillion ($11.8 billion). This represents a 3.2% year-over-year growth compared to the ¥1.62 trillion reported in the first quarter of the previous fiscal year
2
.Vision Fund Performance
A key factor contributing to SoftBank's financial results was the performance of its Vision Funds. The Vision Fund segment, which includes the SoftBank Vision Fund 1 and 2, reported a loss of ¥159.84 billion ($1.1 billion) for the quarter. This loss reflects the ongoing challenges in the tech investment landscape and the volatile nature of SoftBank's portfolio companies
1
.Investment Climate and Strategy
The unexpected loss comes amid a challenging investment climate, particularly in the technology sector. SoftBank, known for its aggressive investments in tech startups and emerging technologies, has faced headwinds due to market volatility and regulatory pressures in various regions
2
.Masayoshi Son, SoftBank's founder and CEO, has previously indicated a more cautious approach to investments, focusing on defensive strategies and preserving cash. This shift in strategy is evident in the reduced pace of new investments compared to previous years
1
.Related Stories
Arm Holdings and Future Prospects
One bright spot in SoftBank's portfolio is Arm Holdings, the British chip designer. SoftBank is preparing for Arm's initial public offering (IPO), which is expected to be one of the largest tech IPOs of the year. The success of this IPO could significantly impact SoftBank's future financial performance and investor sentiment
2
.Market Reaction and Outlook
The unexpected loss has raised concerns among investors about SoftBank's investment strategy and the broader tech investment landscape. However, the company remains optimistic about its long-term prospects, particularly with the upcoming Arm IPO and potential recovery in the tech sector
1
.As SoftBank navigates these challenges, investors and analysts will be closely watching the company's investment decisions, the performance of its Vision Funds, and its ability to capitalize on emerging opportunities in the tech industry.
References
Summarized by
Navi
[1]
[2]
Related Stories
SoftBank Reports $2.4 Billion Loss Amid Major AI Investment Plans
12 Feb 2025•Business and Economy
SoftBank Group Faces Q4 Loss Amid AI Investments and Vision Fund Struggles
12 May 2025•Business and Economy
SoftBank Returns to Profit, Fueled by Tech Investments and AI Ambitions
12 Nov 2024•Business and Economy
Weekly Highlights
1
Oracle's AI-Driven Cloud Surge Propels Larry Ellison to World's Richest Status
Business and Economy
2
Tesla Proposes $1 Trillion Pay Package for Elon Musk Tied to Ambitious AI and Robotics Goals
Business and Economy
3
Anthropic's $1.5B AI Copyright Settlement: A Landmark Deal Under Scrutiny
Policy and Regulation
Weekly Highlights
Explore today's top stories
Your Daily Dose of Curated AI News
Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Spend less time searching for the latest in AI and get straight to action.
