SoftBank posts $3.5bn loss

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  • Japan's SoftBank Group has logged its first quarterly net loss in 18 months
  • The loss is due to the falling value of investments in its Vision Fund, including Chinese ride-hailing giant Didi Chuxing

Japan’s SoftBank Group on Monday, November 8, logged its first quarterly net loss in 18 months on the falling value of investments in its Vision Fund, including Chinese ride-hailing giant Didi Chuxing.

The telecoms firm-turned-investment giant posted a net loss of ¥397.9 billion ($3.5 billion) in July-September, its first net loss since January-March 2020.

That dragged first-half net profit down 80.7 percent on-year to ¥363.5 billion ($3.2 billion).

The SoftBank Group has poured money into some of the tech world’s biggest names and hottest new ventures, from AI to biotech, through its $100-billion Vision Fund.

In total, the firm said its loss on investments during the quarter amounted to ¥1.66 trillion ($14.62 billion), including those incurred by its Vision Fund operations.

In the six months to September, SoftBank said it saw a loss worth ¥321 billion ($2.83 billion) for DiDi Global, the parent of Didi Chuxing, which has been hit by Beijing’s tech crackdown.

Among other major investments, SoftBank said it lost ¥1.21 trillion ($10.65 billion) in its stake in South Korean e-commerce firm Coupang.

First-half sales rose 13.4 percent to ¥2.98 trillion ($26.24 billion), while operating profit sagged 27.4 percent to ¥1.05 trillion ($9.25 billion).

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