SoftBank logged a loss of US$3.5 billion in the second quarter as its Vision Fund unit was hammered by a decline in the market value of some of its key investments, including Coupang and Didi Global.
Masayoshi Son / Photo credit: @SoftBank.
China’s heightened scrutiny over tech firms in the past year has weighed on SoftBank’s investments and has pushed the Japanese conglomerate into the red.
The company had posted a net profit of over US$6.9 billion in the previous quarter.
The results marked SoftBank’s first quarterly loss since the fourth quarter of 2020, when it clocked a record loss of nearly US$9 billion for the full year amid pandemic-induced write-downs on its investments.
The company’s shares closed 0.8% lower at 6,161 yen (US$54.26) on Monday ahead of the release of the results. To date, the stock has plunged more than 40% since it peaked in March this year.
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Shares of companies including Alibaba and Didi – in which SoftBank owns a large stake – fell 35% and 45%, respectively, in the second quarter.
SoftBank is reportedly facing pressure to unveil a new stock buyback program as the slump in the Japanese tech firm’s share price has generated “deep frustration” among shareholders.
Currency converted from Japanese yen to US dollar: US$1 = 113.48 yen.
Editing by Collin Furtado and Arpit Nayak
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