By SoftBank Group released its second-quarter financial results on Thursday. Here are the key details:
Net Loss
SoftBank Group reported a net loss of 931.11 billion yen ($6.17 billion) in the second quarter, compared to a net profit of Y3.034 trillion in the same period last year. The previous year’s profit was boosted by gains from the unwinding of its stake in Alibaba Group Holding. The net loss was significantly lower than the estimated net profit of Y280.26 billion according to a poll of analysts by data provider Quick.
Revenue
Second-quarter revenue increased by 3.7% to reach Y1.670 trillion, which was in line with the estimated revenue of Y1.656 trillion in the Quick poll.
Key Highlights
Vision Funds
SoftBank’s Vision Funds business experienced a loss of Y258.86 billion in the second quarter, compared to a profit of Y61.04 billion in the first quarter and a loss of Y1.020 trillion in the same period last year.
WeWork
SoftBank incurred losses amounting to Y234.39 billion related to its investments in WeWork, which recently filed for bankruptcy protection in the U.S.
Portfolio Improvement
SoftBank stated that recent strategic moves, such as the listing of British chip designer Arm and the sale of its stake in Alibaba, have improved the quality of its portfolio. This has resulted in an increase in the ratio of listed stocks and a decrease in geopolitical risks. The ratio of Chinese stocks in SoftBank’s portfolio decreased from 31% at the end of March 2022 to 9% by the end of September.
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