By YURI KAGEYAMA, AP Enterprise Author
TOKYO (AP) — SoftBank Group Corp. sank into crimson ink for the July-September interval, dragged down by losses on its investments in China, the Japanese know-how conglomerate mentioned Monday.
SoftBank reported a 397.9 billion yen ($3.5 billion) loss for the fiscal second quarter, in comparison with a 627 billion yen revenue recorded the identical interval the earlier 12 months.
Quarterly gross sales grew 11% to 1.5 trillion yen ($13 billion).
Tokyo- based mostly SoftBank mentioned its funding portfolio referred to as Imaginative and prescient Fund suffered losses, together with the worth of its stake in South Korean on-line retailer Coupang.
Nevertheless it mentioned it booked features on its shares in DoorDash, an internet food-ordering service based mostly in San Francisco.
SoftBank mentioned the latest crackdown in China on the know-how sector weighed on Chinese language share costs.
SoftBank’s Imaginative and prescient Fund was hit by a 1 trillion yen ($9 billion) loss within the July-September quarter, in line with its chief government, Masayoshi Son.
Son, who based the corporate, acknowledged the newest losses have been a giant distinction to the booming outcomes it reported for the earlier fiscal 12 months.
“We now have headed straight right into a blizzard in the midst of the winter,” Son informed reporters, including he gained’t make excuses.
He mentioned one massive issue was a pointy drop within the share value of Chinese language e-commerce firm Alibaba, through which SoftBank is a shareholder.
However he careworn SoftBank’s fundamental enterprise was shifting to the Imaginative and prescient Fund and changing into much less depending on Alibaba’s efficiency. Nonetheless, Imaginative and prescient Fund’s Chinese language investments additionally suffered.
Son mentioned Imaginative and prescient Fund’s investments general have been gaining worth. Its portfolio has been always altering. It as soon as owned U.S. cell firm Dash, however Dash has merged with T-Cellular, through which SoftBank stays an investor.
SoftBank has a Japanese cell provider beneath its wing that was the primary to supply the iPhone within the Japanese market.
It additionally has invested in U.S. office-sharing enterprise WeWork, a transfer that critics mentioned was a mistake, however Son mentioned its efficiency was recovering.
Investments in U.S. chip firm Arm and ride-hailing service Uber are examples which can be faring comparatively nicely.
“I really feel that Imaginative and prescient Fund is producing outcomes,” mentioned Son.
He mentioned he nonetheless noticed promise, displaying video of a tiny inexperienced seedling sprouting within the snow.
“Whereas a number of the eggs our goose has laid simply died, the opposite golden eggs are shining in splendor,” he mentioned.
Yuri Kageyama is on Twitter https://twitter.com/yurikageyama
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