Aug 7, 2024, 9:49 AM
Aug 7, 2024, 9:49 AM

SoftBank Reports Smaller Losses Thanks to Alibaba Gains

Highlights
  • SoftBank Group reported a smaller loss in the April-June quarter compared to the previous year.
  • The decrease in losses was attributed to the gains made by Alibaba Group.
  • This positive outcome showcases the impact of Alibaba's performance on SoftBank's financial results.
Story

TOKYO – SoftBank Group Corp., the prominent Japanese technology investor, announced a reduced loss for the April-June quarter, reporting a deficit of 174 billion yen ($1.2 billion). This marks a significant improvement from the nearly 478 billion yen loss recorded during the same period last year. The company attributed this positive shift to enhanced performance in its investment operations. In the latest quarter, SoftBank experienced a 9% increase in sales, bolstered by its diverse portfolio that includes stakes in notable companies such as WeWork, Alibaba, and T-Mobile. The firm reported a substantial gain of approximately 560 billion yen ($3.8 billion) from its investment operations, reflecting a recovery in several key holdings. Notably, WeWork, which had filed for Chapter 11 bankruptcy protection in 2023, successfully emerged from bankruptcy in June. SoftBank's investments in Arm, a leader in artificial intelligence and processor technology, also contributed to the sales growth. Gains were noted in its stakes in Alibaba and T-Mobile, while the SoftBank Vision Funds recorded an investment gain of 32 billion yen ($218 million) due to rising share values. However, the company faced challenges from the weak yen, which negatively impacted its financial results, adding 443.9 billion yen ($3 billion) in losses during the quarter as the U.S. dollar traded at around 150 yen.

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