SoftBank Group Posts Second-Quarter Net Loss
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SoftBank Group, the Japanese technology and investment company, experienced a significant decrease in its shares following the announcement of a second-quarter net loss attributed to weak tech investment results.
The company's shares were down 6.0% at 5,924 yen, dropping as much as 7.6% earlier in the day on Friday.
SoftBank Group reported a net loss of 931.11 billion yen ($6.15 billion) for the quarter, compared to a net profit of Y3.034 trillion during the same period last year. The previous year's profit had been bolstered by gains from the unwinding of its stake in Alibaba Group.
This quarterly net loss contrasts with the estimated net profit of Y280.26 billion, according to a poll of analysts conducted by data provider Quick.
SoftBank Group's Vision Funds tech investment segment saw a loss of Y258.86 billion in the second quarter, compared to a loss of Y1.020 trillion in the same period last year.
The company also recorded Y234.39 billion in losses related to its investments in WeWork during the first half of the year. WeWork, the office-sharing company, recently filed for bankruptcy protection in the U.S.
SoftBank Group is preparing for new investments after a period of caution resulting from a global tech selloff and investment losses in previous quarters.
Chief Financial Officer Yoshimitsu Goto stated that the company is now open to larger investments if it can identify favorable opportunities.
Contact Kosaku Narioka for more information.
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