TOKYO — Japanese expertise firm SoftBank Group Corp. racked up an enormous loss within the July-September quarter as its expertise investments, most notably office-sharing firm WeWork, went bitter.
Tokyo-based SoftBank loss totaled 931 billion yen ($6.2 billion) within the final quarter, a reversal from the three trillion yen revenue it posted in the identical interval a yr earlier.
SoftBank has a sprawling funding portfolio and tends to have erratic monetary outcomes that fluctuate with market tendencies.
That has been highlighted by the troubles at WeWork, which filed for Chapter 11 chapter safety this week amid turmoil within the U.S. business actual property market after the pandemic despatched vacancies hovering in main cities like New York and San Francisco.
SoftBank holds an almost 80% stake in WeWork.
SoftBank’s chief monetary officer, Yoshimitsu Goto, sought to allay investor’s worries, stressing in a web based information convention that the corporate was nonetheless going sturdy total, making cautious funding selections and plans to continue to grow.
He stated WeWork’s troubles have been “regrettable.” SoftBank will examine what went incorrect and attempt to do higher with its future Imaginative and prescient Fund investments, Goto stated.
SoftBank’s monetary harm associated to WeWork within the July-September quarter totaled 234 billion yen ($1.5 billion), in line with the corporate, which was the primary telecoms operator to carry the iPhone to Japan.
Goto gave for instance of a hopeful improvement the latest IPO on Nasdaq of British semiconductor and software program design firm Arm, which SoftBank acquired in 2016.
The itemizing didn’t instantly have an effect on SoftBank’s earnings outcomes, however a acquire of $47 billion was recorded as a capital surplus.
SoftBank’s quarterly gross sales have been little modified, edging as much as 1.67 trillion yen ($11 billion) from 1.61 trillion yen. The corporate doesn’t give full yr forecasts.
SoftBank used to personal important stakes in Amazon, Facebook and Alphabet however offered them a few years in the past. SoftBank has additionally offered its stake in Uber to experience out exhausting instances, and dramatically lowered its stake in Alibaba, the Chinese language e-commerce and expertise firm.
SoftBank Group Corp. shares rose 1.1% Thursday on the Tokyo Inventory Change.
Yuri Kageyama is on X, previously Twitter https://twitter.com/yurikageyama