SoftBank Reports Record $23 Billion Quarterly Loss As Tech Downturn Hits

TOKYO – A Japanese technology investor

Soft Bank

9984 0.74%

Group Corp on Monday reported a quarterly loss of more than $23 billion after its Vision Fund investments were hit by a global selloff in technology stocks.

The April-June loss was 1½ times the previous record in the January-March quarter three months ago.

Weak results are reflected Fall of tech stocks Recently around the world, it has been fueled by rising interest rates and China’s crackdown on tech companies.

Shares

Uber

Technologies Inc. And

Door Dash Inc.,

Two US companies in which SoftBank invested fell more than 40% in the April-June quarter. SoftBank has announced that its Vision Fund 1 has fully exited its position in Uber.

Soft Bank was quick plow its money into tech startups Last year, I saw new opportunities in businesses like finance and health changing in the pandemic era. Chief executive Masayoshi Son and his team invested $38 billion from SoftBank’s Vision Fund 2 in 183 companies last year, according to SoftBank’s filings.

On Monday, Mr. “When we made a big profit, I was a bit giddy, and looking back at myself now, I’m very ashamed and sorry,” he said.

In May, as losses on those investments began to emerge, Mr.

He said on Monday that SoftBank’s Vision Funds approved about $600 million in investments in the April-June quarter, compared with $20.6 billion in the same quarter a year earlier. While the market’s decline may prompt some companies to negotiate, caution will continue, he said.

“Now seems like the perfect time to invest when the stock market is falling so much, and I’m tempted to do so, but if I do, we’re going to take an irreversible blow, and that’s unacceptable,” he said.

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Softbank said it had boosted its funding by cashing out some of its older investments. It said it raised $10.49 billion using its stake in the Chinese e-commerce company

Alibaba

GROUP HOLDING LIMITED. SoftBank used so-called prepaid forward contracts, in which it receives money from lenders and promises to settle the contract later in cash or with Alibaba shares.

SoftBank reports its results in yen. The net loss for the April-June quarter was ¥3.16 trillion, equivalent to $23.4 billion at current exchange rates. That compares with a net loss of ¥2.1 trillion in the January-March quarter. Softbank reported a loss of ¥1.71 trillion for the full fiscal year ended March 31. A record annual figureEquivalent to $12.7 billion at current rates.

Shares of SoftBank have been flat recently and rose 0.7% in Tokyo trading on Monday, which ended before the results were released.

Write to Megumi Fujikawa at [email protected]

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