Financial Reporting

SoftBank Posts Record $12.7B Operating Loss in 2019-20

The company’s tech fund reported a loss of $17.7 billion.
SoftBank Posts Record $12.7B Operating Loss in 2019-20

SoftBank Group reported its earnings for the financial year between April 2019 to March 2020 on Monday.

The Japanese investment firm reported an annual operating loss of $12.7 billion. This compares with the $19.3 billion operating profit it posted in the similar period a year ago.

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SoftBank posted a loss per share of $4.53, compared with $5.86 earnings per share posted last year.

The majority of losses come from the group’s Vision Fund, which was created to fund promising technology startups. The fund netted $17.7 billion in operating loss, negating the profits posted in other sectors.

A significant part of the Vision Fund losses came in the fourth quarter, as fair values of its portfolio companies, including Uber Technologies and WeWork, decreased due to the impact of the novel coronavirus (COVID-19) pandemic, SoftBank said.

The Masayoshi Son-led conglomerate said it took a loss of nearly $5.2 billion from its Uber investment and $4.6 billion from WeWork. Both companies had caused massive losses for SoftBank in the two quarters preceding the pandemic as well.

SoftBank, earlier in the day, announced it was looking to repurchase shares worth $4.7 billion by March 2021. The company is also reportedly looking to sell a significant portion of its stake in T-Mobile.

Its shares closed 1% lower at $21.16 in the OTC market on Friday.

This story originally appeared on Benzinga.

© 2020 Benzinga does not provide investment advice. All rights reserved.

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