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SoftBank Group reports $5.9 billion third-quarter loss on tech slump
The loss compared with the net profit of 29.0 billion yen ($219 million) the firm reported in the same three-month period last year.
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The logo of SoftBank Group Corp is displayed at SoftBank World 2017 conference in Tokyo, Japan, July 20, 2017. (Reuters/Issei Kato)
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apan's SoftBank Group on Tuesday reported a surprise $5.9 billion net loss in the third quarter, as a slump in the tech sector continued to hit the investment behemoth's bottom line.
The loss compared with the net profit of 29.0 billion yen ($219 million) the firm reported in the same three-month period last year.
Its two Vision Fund investment vehicles alone lost 660 billion yen ($5 billion) in October-December, "reflecting declines in the share prices of a wide range of portfolio companies", SoftBank said.
The firm has made huge bets to find and grow hot new tech ventures around the world, but that has left its earnings vulnerable to fickle market forces, and its Vision Funds have reported losses for four straight quarters.
Interest rate hikes by the US Federal Reserve and other central banks to tackle inflation have weighed on global tech shares, putting pressure on SoftBank.
Its results have lurched between dizzying highs and lows in recent years, with China's crackdown on its tech sector taking a toll on the company.
Second-quarter earnings were boosted by the sale of some shares in Alibaba as it reduced its stake to around 15 percent from 24 percent.
