SoftBank Accomplishes Profit In Q2; Vision Fund Continues To Bleed

SoftBank Accomplishes Profit In Q2; Vision Fund Continues To Bleed
  • Softbank Group Corp's SFTBF SFTBY core Vision Fund arm posted a $7.2 billion quarterly loss as plunging startup valuations continue to weigh on its financial performance.
  • The Vision Fund segment lost 1.02 trillion yen in July-September, following a 2.33 trillion yen loss in the June quarter.
  • Softbank logged a net income of 3.03 trillion yen thanks to the disposal of a chunk of its Alibaba Group Holding Ltd BABA stake, Bloomberg reports.
  • The company said its total profit on its disposal of Alibaba shares was 5.37 trillion yen. In the first quarter, the group posted a 3.16 trillion yen loss.
  • SoftBank battled declines in public investments, with the Vision Fund recording net valuation losses totaling 1.19 trillion on its public holdings in the recent quarter.
  • Investment losses at flagship unit Vision Fund were 1.38 trillion yen ($9.75 billion) in the three months to September 30 as the value of its portfolio continued to slide, Reuters reports.
  • China's SenseTime Group Inc SNTMF accounted for 364 billion yen. In contrast, U.S. food delivery firm DoorDash, Inc DASH accounted for 225 billion yen, and Indonesian ride-hailing and e-commerce firm GoTo Group GTOFF 108 billion yen.
  • Billionaire founder Masayoshi Son and SoftBank struggled to wait out the slump, selling off shares in Alibaba and Uber Technologies Inc UBER.
  • Chipmaker sentiment has soured drastically in recent weeks, putting the onus on Arm Ltd's finances to make an initial public offering successful.
  • As attention turns to SoftBank's balance sheet, SoftBank has been hurrying to offload assets to bolster its bottom line and fund a share repurchase spree.
  • The accelerated pace of its stock buybacks has sparked renewed speculation that Son may lead a management buyout of SoftBank.
  • Also ReadSoftBank Might Write Off $100M Loss On Stake Held In Beleaguered FTX Crypto Exchange
  • Price Action: SFTBY shares closed higher by 5.59% at $24.83 on Thursday.
  • Photo Via Wikimedia Commons

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