Japan’s SoftBank Group trims investment losses but remains in red for fiscal year


SoftBank Group, a Japanese technology company, recently announced its financial results for the fiscal year ending in March. The company’s performance showed significant improvement compared to the previous year, with reduced losses and increased sales. Let’s delve into the details of SoftBank’s fiscal year journey and explore what contributed to its turnaround.

SoftBank Group reported a 2.8% increase in annual sales, reaching 6.76 trillion yen ($43 billion). More notably, the company managed to trim its losses to 227.6 billion yen ($1.5 billion), a significant improvement from the 970 billion yen loss recorded in the previous fiscal year. This positive trend continued into the quarterly results, with SoftBank achieving its second consecutive quarterly profit of 231 billion yen ($1.5 billion) for January-March.

Several factors contributed to SoftBank’s improved performance. One key factor was a decline in investment losses, particularly from its holdings in Alibaba, a Chinese technology company, and T-Mobile. While SoftBank faced setbacks from investments like WeWork, gains from other holdings such as ByteDance helped offset these losses.

SoftBank’s subsidiary, Arm, a British semiconductor and software design company, witnessed a surge in value in recent months. Despite this growth, the earnings results did not fully reflect Arm’s success, as it listed on the Nasdaq last year. Nevertheless, Arm’s promising trajectory indicates potential for further growth in the future.

SoftBank’s Vision Fund, focused on investments in technology, has seen mixed results. While SoftBank Vision Fund 1 has logged a gain of $16.7 billion since its inception, SVF2 has incurred losses of $19.3 billion. Despite facing losses in the fiscal year, SoftBank remains optimistic about the future stability of its Vision Fund investments.

Masayoshi Son, the visionary founder of SoftBank, is known for his ambitious goals and investments in emerging technologies like artificial intelligence (AI). Although Son was absent from the earnings presentation, he is expected to outline his vision for the future of AI at the upcoming shareholders’ meeting. SoftBank’s CFO, Yoshimitsu Goto, emphasized Son’s focus on new initiatives in what the company calls “the AI age.”

SoftBank Group’s fiscal year performance reflects a significant turnaround, marked by reduced losses and increased sales. Despite challenges faced in some investments, the company remains optimistic about the future, particularly in emerging technologies like AI. As SoftBank continues to navigate the dynamic landscape of technology investments, it remains poised for growth and innovation in the years to come.


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