softbank reports record $13 bn full-year net loss
The group’s stakes in global tech giants and volatile new ventures have made for unpredictable earnings.

Japan’s SoftBank Group on Thursday logged a record annual net loss after a bruising period that saw its assets hit by a US tech-share rout and a regulatory crackdown in China.

The investment giant reported a net loss of 1.708 trillion yen ($13.17 billion) in the year to March 2022—a vertiginous plunge from 4.99 trillion yen net profit the previous year, when huge market rallies boosted results.

SoftBank’s big stakes in global tech giants and volatile new ventures have made for unpredictable earnings, and the huge profit drop can be linked to tanking tech shares as the United States hikes interest rates to tackle inflation.

Reporting an eye-watering investment loss of 3.4 trillion yen, SoftBank said its tech-focused Vision Fund has suffered falls “due to a decline in the share prices of most listed portfolio companies”.

The losses have been deepened by the many shares they hold on Chinese ride-hailing giant Didi Chuxing and e-commerce group Alibaba, which have been hit by a crackdown by Beijing on the country’s private sector.

In 2019-20, SoftBank Group reported a then-record net loss of 961.6 billion yen, as the emergence of COVID-19 compounded woes caused by its investment in troubled office-sharing start-up WeWork.

But it rebounded in 2020-21 to report Japan’s biggest-ever annual net profit after people moved their lives online during the pandemic, sending tech stocks soaring.

In February, SoftBank said the $40 billion sale of chip powerhouse Arm to Nvidia had collapsed because of “significant regulatory challenges” over competition concerns, and it now plans to take the unit public.

‘Ups and downs’

Hideki Yasuda, senior analyst at Toyo Securities, said that while the tech sector SoftBank is focused on is not doing well right now, it’s worth taking the long view.

“It’s important for investors (like SoftBank) to think about what might happen in 20 years,” he told AFP before the earnings announcement.

“They must accept ups and downs in the short-run,” Yasuda said, noting that it took years for Chinese e-commerce giant Alibaba to become a viable investment for SoftBank.

CEO Masayoshi Son in November announced a share buyback worth one trillion yen, reportedly under pressure from shareholders frustrated by SoftBank’s sinking stock price.

© 2022 AFP

Citation: SoftBank reports record $13 bn full-year net loss (2022, May 12) retrieved 12 May 2022 from https://techxplore.com/news/2022-05-softbank-bn-full-year-net-loss.html This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.

TECH NEWS RELATED

How to stop the iOS Photos app from showing pictures of your ex

Imagine this: you’re having a nice day, the weather is great, you’ve enjoyed a brilliant breakfast… and suddenly your iPhone shows a photo memory with your ex to inadvertently ruin your day. Why, you ask, as you curse the heavens, does this have to happen to you? Well, Apple’s ...

View more: How to stop the iOS Photos app from showing pictures of your ex

Motorola smartphone with 200 MP camera launching in July 2022

Motorola recently confirmed that it would be launching its first Snapdragon 8 Gen 1 Plus powered smartphone soon. And while the company did tease a flip smartphone, presumably the Moto Razr 3, in its official post, the device in question wasn’t officially confirmed. However, a Snapdragon 8 Gen 1+ ...

View more: Motorola smartphone with 200 MP camera launching in July 2022

WhatsApp could soon make it easier to see which images people liked

Source: Luke Filipowicz/iMore What you need to know WhatsApp is testing a new way to highlight which images in an album have been liked. A new thumbnail image will show which image was liked. The only way to see which images within albums have been liked is to tap through ...

View more: WhatsApp could soon make it easier to see which images people liked

Best iPad (2020) Case 2022

Best iPad (2020) Case iMore 2022 If you’re looking for the best iPad 2020 case, look no further. We’ve rounded up the best cases for the 8th generation iPad right here. Luckily, the 7th generation iPad (2019) and the 9th generation iPad (2021) also have the same dimensions, so the ...

View more: Best iPad (2020) Case 2022

WhatsApp will drop support for some iPhones in October meaning you'll need to upgrade to keep using it

Source: Luke Filipowicz/iMore What you need to know WhatsApp is set to drop support for iOS 10 and iOS 11 in October. Those with iPhone 5-series devices won’t be able to update to iOS 12. WhatsApp plans to drop support for iOS 11 and iOS 10 from October 24, meaning ...

View more: WhatsApp will drop support for some iPhones in October meaning you'll need to upgrade to keep using it

Elon Musk deep fakes promote new BitVex cryptocurrency scam

Cryptocurrency scammers are using deep fake videos of Elon Musk and other prominent cryptocurrency advocates to promote a BitVex trading platform scam that steals deposited currency. This fake BitVex cryptocurrency trading platform claims to be owned by Elon Musk, who created the site to allow everyone to earn up ...

View more: Elon Musk deep fakes promote new BitVex cryptocurrency scam

Nvidia pauses hiring to help cope with inflation

This comes as the Federal Reserve underlined the link between higher wages contributing to inflation earlier this month

View more: Nvidia pauses hiring to help cope with inflation

Maruti Suzuki to acquire AI firm Sociograph Solutions

AgenciesNew Delhi: Maruti Suzuki India (MSI) on Monday said it will acquire an equity stake of 12.09 per cent in Sociograph Solutions Pvt Ltd (SSPL) for about Rs 2 crore. SSPL is an artificial intelligence (AI) software company that specialises in visual AI platform predominantly used to help enterprises improve ...

View more: Maruti Suzuki to acquire AI firm Sociograph Solutions

Sequoia Capital announces inaugural cohort of European startup accelerator programme Arc

Linux Kernel 5.18 Has Been Released — What’s New?

Vivo takes the X80 and X80 Pro to the global market (pricing updated)

Hundreds of endangered baby giant turtles released into Cambodian river

Apple TV+ buys hot new 'Fingernails' movie featuring Jessie Buckley & Riz Ahmed

Niantic to implement new social features in Pokémon GO

Brazil announces partnership with Elon Musk to connect Amazon rainforest

Mysterious Apple network adapter hits the FCC – and it runs iOS

The profound impact of giving American families a little more cash

Chinese EV battery giant CATL increases size of patents lawsuit against state-owned rival CALB to US$76.5 million

This QR code puzzle brings a chance to win $2 million

More details about the upcoming Redmi Note 11T Pro

OTHER TECH NEWS

Top Car News Car News