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
Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsTechMediaBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!