Japan’s Softbank Group reported a record quarterly net loss of $23.4 billion after interest rate hikes tanked tech shares.
The telecom firm-turned-investment goliath posted a net loss of 3.16 trillion yen, plummeting from a net profit of 761.5 billion yen in the same April-June period the previous year.
SoftBank’s CEO Masayoshi Son told reporters that global stock declines and the rapid depreciation of the yen had contributed to the slump. The firm’s statement elaborated, blaming the global downward trend in share prices due to growing concerns over economic recession driven by rising interest rates and inflation.
SoftBank’s significant stakes in volatile new ventures and global tech giants have made for unpredictable earnings, which have lurched between record highs and lows in recent years.
The portfolio firms that suffered massive losses for the quarter included US meal delivery platform DoorDash and South Korean e-commerce giant Coupang, the SoftBank Group said.
SoftBank’s outspoken CEO, Son, said he wanted to reflect and learn from the enormous losses suffered by SoftBank’s technology-focused Vision Fund, which sustained even worse declines than the tech-rich Nasdaq.
Japanese media outlets said SoftBank’s Q1 result was the largest quarterly loss the country had ever seen.
In May 2022, SoftBank reported its worst-ever full-year net loss—and a then-record quarterly loss for Q4—after a bruising 2021-22 that saw its assets hit by a US tech stocks rout and a regulatory crackdown in China.
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