SoftBank Group Quarterly Profit Wiped Out By Vision Fund Losses

38
581

SoftBank Group Quarterly Profit Wiped Out By Vision Fund Losses

SoftBank Group Corp reported a near-total wipe out in quarterly profit on Wednesday, after the Japanese technology investor was whiplashed for a second consecutive quarter by losses at its $100 billion Vision Fund.

The dire result is likely to deepen concern about founder Masayoshi Son’s ability to secure funding for a second Vision Fund, and give more ammunition to activist investor Elliott Management which has recently emerged as a prominent shareholder.

The numbers are also the latest reminder of the inherent risk in Son’s strategy of betting big on untested startups. The Vision Fund posted an operating loss of 225 billion yen ($2.05 billion) for October-December compared to 176 billion yen profit in the same period a year earlier.

But Son, who is known for his ebullience and charisma – still rare in corporate Japan – said his company was already turning the corner.

He pointed to a rally in prices at the Vision Fund’s handful of listed investments and news overnight that a U.S. federal judge had rejected an antitrust challenge to the proposed merger of SoftBank’s Sprint Corp and T-Mobile US Inc.

“The tide is turning,” Son told a briefing following the release of SoftBank earnings.

Group profit reached 2.6 billion yen for the quarter versus 438 billion yen a year prior. The figure included a 332 billion yen dilution gain related to the secondary listing of portfolio firm Alibaba Group Holding Ltd.

The result compared with the 345 billion yen average of three analyst estimates compiled by Refinitiv. Analysts have said it is difficult to evaluate SoftBank’s performance due to a lack of disclosure around Vision Fund’s internal valuations.

The Vision Fund, which is backed by Saudi Arabia and has single-handedly changed the face of tech investing, said it had invested $74.6 billion in 88 companies as at December-end, at which time those investments were worth $79.8 billion.

INVESTING CREDENTIALS

Nanny McPhee Actor Raphael Coleman Dies

Son’s investing credentials took a hit in the August-September quarter when the Vision Fund recorded an $8.9 billion operating loss following weakness at major bets such as office space-sharing firm WeWork.

https://www.reuters.com

Since then, a slew of portfolio companies – from hotel-booking platform Oyo to cloud robotics firm CloudMinds – have cut jobs and come under pressure to demonstrate the long-term viability of their business models.

The fund itself has also lost key employees.

Tuesday offered a bright spot when a U.S. federal judge rejected an antitrust challenge to the proposed takeover of SoftBank’s troubled U.S. wireless subsidiary Sprint Corp by T-Mobile US Inc, sending SoftBank stock to its highest price in seven months.

Nevertheless, SoftBank faces pressure to enhance shareholder value after sources told Reuters last week that U.S. hedge fund Elliott Management had amassed a stake of almost $3 billion in the conglomerate and is pushing for change including $20 billion in stock buybacks.

SoftBank Group Quarterly Profit Wiped Out By Vision Fund Losses

38 COMMENTS

  1. A remarkable share, I simply given this onto an associate who was doing a little evaluation on this. And also he in fact got me breakfast since I discovered it for him. smile. So let me rephrase that: Thnx for the treat! Yet yeah Thnkx for spending the moment to review this, I feel strongly about it and also love reading more on this subject. Preferably, as you become expertise, would certainly you mind upgrading your blog site with more details? It is highly handy for me. Big thumb up for this post!

  2. Hi there, just became aware of your blog through Google, and found that it’s really informative. I’m going to watch out for brussels. I will be grateful if you continue this in future. Numerous people will be benefited from your writing. Cheers!

  3. Incredible! This blog looks exactly like my old one! It’s on a completely different topic but it has pretty much the same page layout and design. Wonderful choice of colors!

  4. Heya i am for the first time here. I found this board and I find It truly useful & it helped me out a lot. I hope to give something back and aid others like you helped me.

  5. I do agree with all the ideas you have presented to your post. They are very convincing and can certainly work. Nonetheless, the posts are too short for novices. May just you please extend them a bit from subsequent time? Thank you for the post.

  6. The root of your writing while appearing agreeable in the beginning, did not really sit perfectly with me personally after some time. Somewhere within the paragraphs you managed to make me a believer unfortunately only for a very short while. I nevertheless have got a problem with your leaps in assumptions and one would do nicely to fill in all those breaks. In the event that you actually can accomplish that, I could surely be impressed.

  7. Hi! Quick question that’s completely off topic. Do you know how to make your site mobile friendly? My website looks weird when browsing from my apple iphone. I’m trying to find a template or plugin that might be able to fix this problem. If you have any recommendations, please share. Many thanks!

  8. Hmm it seems like your blog ate my first comment (it was super long) so I guess I’ll just sum it up what I wrote and say, I’m thoroughly enjoying your blog. I as well am an aspiring blog writer but I’m still new to everything. Do you have any suggestions for novice blog writers? I’d really appreciate it.

  9. Excellent post. I used to be checking constantly this weblog and I’m impressed! Extremely useful information specially the closing part 🙂 I handle such info much. I used to be seeking this particular info for a very lengthy time. Thanks and good luck.

  10. You could certainly see your expertise in the work you write. The world hopes for even more passionate writers such as you who aren’t afraid to mention how they believe. Always go after your heart.

  11. Simply wish to say your article is as amazing. The clearness in your post is just cool and i can assume you are an expert on this subject. Fine with your permission let me to grab your feed to keep updated with forthcoming post. Thanks a million and please keep up the gratifying work.

  12. hello!,I really like your writing very much! percentage we communicate more approximately your article on AOL? I need an expert in this space to resolve my problem. Maybe that is you! Looking forward to look you.

  13. There are some intriguing points in this article yet I don?t understand if I see every one of them facility to heart. There is some validity but I will hold point of view till I look into it even more. Excellent article, thanks and also we want more! Contributed to FeedBurner too

  14. I’ve read a few excellent stuff here. Definitely value bookmarking for revisiting. I surprise how so much attempt you place to make one of these fantastic informative site.

  15. you’re in point of fact a just right webmaster. The site loading pace is incredible. It kind of feels that you’re doing any unique trick. In addition, The contents are masterpiece. you’ve performed a great job on this topic!

  16. Hello, you used to write fantastic, but the last several posts have been kinda boring¡K I miss your tremendous writings. Past several posts are just a bit out of track! come on!

  17. I was that very happy to you might need. This can be an sorts of lead that must be because of and the random untrue stories absolutely on supplementary blog pages. Get enjoyment your incredible placing this amazing most useful doctor.

  18. An fascinating discussion may be worth comment. I think you should write on this topic, it might certainly be a taboo subject but usually people are not enough to dicuss on such topics. To a higher. Cheers

  19. Thanks a bunch for another valuable post. Ive been checking this web site often for the past couple of months, and its currently one among my favorite sites! . I work on an internet site that has very similar content, would you have any interest write a guest post on it? Shoot me an email if you’re interested!

  20. I’m not sure where you are getting your information, but great topic. I needs to spend some time learning more or understanding more. Thanks for fantastic info I was looking for this information for my mission.

  21. Somebody necessarily lend a hand to make severely posts I’d state. This is the first time I frequented your website page and thus far? I surprised with the analysis you made to create this particular submit extraordinary. Excellent job!

  22. Someone essentially lend a hand to make seriously articles I’d state. That is the very first time I frequented your website page and to this point? I surprised with the research you made to create this particular publish extraordinary. Fantastic task!

  23. I loved as much as you will receive carried out right here. The sketch is tasteful, your authored material stylish. nonetheless, you command get got an impatience over that you wish be delivering the following. unwell unquestionably come further formerly again since exactly the same nearly very often inside case you shield this increase.

  24. Area on with this write-up, I genuinely assume this website needs far more factor to consider. I?ll possibly be again to read much more, thanks for that details.

  25. Thank you for every other excellent article. Where else may anybody get that kind of information in such a perfect manner of writing? I’ve a presentation next week, and I am on the search for such information.

LEAVE A REPLY

Please enter your comment!
Please enter your name here