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SoftBank Still Posted Loss Even After Registering Growth of Vision Fund

Its Vision Funds registered an investment gain of JPY159.8 billion, aided by an increased valuation for chip designer Arm. Without this, the funds posted a loss of JPY13 billion compared with a loss of JPY2.9 trillion.

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SoftBank Group posted another quarterly loss in its fiscal Q1 2023 (ending 30 June) despite a rebound in tech stocks helping its Vision Funds record investment gains for the first time in six quarters.

The company registered a net loss of JPY477.6 billion ($3.4 billion) compared with a JPY3.2 trillion loss in fiscal Q1 2022, impacted by higher forex losses due to a weaker yen.

Its Vision Funds registered an investment gain of JPY159.8 billion, aided by an increased valuation for chip designer Arm. Without this, the funds posted a loss of JPY13 billion compared with a loss of JPY2.9 trillion.

On its earnings call, CFO Yoshimitsu Goto (pictured) said its Vision Fund posted its first turnaround in six quarters, with the company moving back to investment activities.

Goto noted positive market trends over the past three months, but insisted it must be “careful and selective” as its shifts to what chair and CEO Masayoshi Son previously referred to as offensive mode, and is focusing on the AI trend.

He said it needs to remain alert, adding it “will keep monitoring the situation against a backdrop of challenging economic conditions and we won’t be complacent”.

Its total investment losses fell from JPY2.8 trillion to JPY699 billion, which included a JPY452.4 billion loss on its Alibaba holdings.

Total sales were flat at JPY1.6 trillion.

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