SoftBank Group Corp., a Japanese technology company, revealed a significant loss of 369.2 billion yen ($2.4 billion) for the fiscal third quarter due to challenges faced in its Vision Fund investments. This marked a stark contrast to the 950 billion yen profit reported in the same period of the previous year. Despite the loss, the company’s quarterly sales experienced a modest 3% increase to reach 1.83 trillion yen ($11.9 billion), as disclosed by the Tokyo-based firm on Wednesday.
This financial setback comes shortly after the company’s founder and chief executive, Masayoshi Son, made headlines for unveiling a groundbreaking artificial intelligence project named Stargate during a high-profile event in Washington, where he was joined by notable figures such as President Donald Trump, Sam Altman of OpenAI, and Larry Ellison of Oracle. Son has consistently emphasized SoftBank’s strategic focus on the potential of artificial intelligence technology as a key driver of future growth.
SoftBank Group’s investment portfolio encompasses a diverse range of companies deemed to have long-term growth potential, including promising startups and established enterprises. Consequently, the company’s financial performance often exhibits significant fluctuations. For the nine-month period ending in December of the current fiscal year, SoftBank Group reported a profit of 636 billion yen ($4 billion), a noteworthy turnaround from the 459 billion yen loss recorded in the same period of the previous year.
Notable gains in investment were attributed to holdings in companies such as Chinese e-commerce giant Alibaba, South Korean-based U.S. retailer Coupang, mobility service provider DiDi Global, and Singaporean technology firm Grab Holdings. Additionally, improved sales performance was observed within the British semiconductor company Arm’s business segment.
However, the gains accrued earlier in the fiscal year were partially offset by losses incurred in the latest quarter. SoftBank Group refrains from providing an annual forecast amidst the dynamic nature of its investment activities.
___
Yuri Kageyama is on Threads: https://www.threads.net/@yurikageyama
