The SoftBank group once again suffered a huge quarterly net loss, of around 931.1 billion yen (5.75 billion euros at current prices), according to accounts published this Thursday, while analysts expected a positive result. The Japanese group, which has not made a net profit for a year, has once again suffered large losses on its investments.
As for the profits generated by Arm’s IPO in September, they did not impact its consolidated results because this company remains a subsidiary of SoftBank. However, the $4.6 billion capital gain generated by Arm’s initial public offering on Wall Street serves to strengthen SoftBank’s financial position.
Regarding the investments held by the group as of September 30, that is, at the end of the second quarter of its current financial year 2023/24, both the value of the listed and unlisted companies present in its portfolio have generally decreased. , he claimed. -he explained in a press release. The SoftBank Group also suffered the negative effects of the exchange rate linked to the new fall of the yen against the dollar: because its loans denominated in dollars exceed the liquidity it has in this currency, he explained.
Bankruptcy filing for WeWork
The problems of the SoftBank Group, which has been struggling with often monstrous losses for several years, seem far from over. The American office-sharing giant WeWork, in which the Japanese group had invested heavily and saved at great cost at the end of 2019, declared bankruptcy at the beginning of the week, which portends further negative impacts for SoftBank.
As usual, the group did not provide earnings forecasts on Thursday, due to the numerous uncertainties surrounding its future performance, which is highly dependent on the evolution of the stock markets and, in particular, the technology sector.
Source: BFM TV
