SoftBank Group Corp. has announced a substantial loss of 369.2 billion yen (approximately $2.4 billion) for the third quarter of its fiscal year, primarily due to setbacks in its Vision Fund investments.
This stands in stark contrast to the significant profit of 950 billion yen that the company reported during the same period last year, specifically for October to December 2023.
The company’s quarterly revenue saw a 3% increase year-on-year, reaching 1.83 trillion yen (about $11.9 billion), as stated in their report released on Wednesday.
This financial announcement comes shortly after Masayoshi Son, SoftBank’s founder and CEO, made headlines for his appearance alongside former President Donald Trump, as well as tech leaders like Sam Altman of OpenAI and Larry Ellison of Oracle.
Together, they unveiled a considerable investment plan of up to $500 billion for an artificial intelligence initiative titled Stargate.
Son has consistently emphasized that SoftBank’s focus is directed towards the potential of artificial intelligence for the future.
The firm’s investment strategy is broad, covering various sectors, including startups that are not publicly listed, which results in significant fluctuations in its financial outcomes.
For the first nine months of the current fiscal year ending in December, SoftBank reported a profit of 636 billion yen ($4 billion), representing a rebound from a loss of 459 billion yen in the same period the previous year.
Notable investment gains have been experienced from holdings in various companies, including Chinese e-commerce giant Alibaba, the U.S.-based South Korean retailer Coupang, mobility service provider DiDi Global, and Singapore-based Grab Holdings.
Additionally, revenues benefited from improved sales in its British semiconductor subsidiary, Arm.
However, some of the gains made in earlier parts of the fiscal year were diminished during the most recent quarter.
Notably, the company does not provide an annual financial forecast, contributing to uncertainty surrounding its future performance.
