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Softbank Group to report 1.35-T.-Yen operating loss

Softbank Group Corp. said Monday that it expects to report a consolidated operating loss of 1.35 trillion yen for fiscal 2019, which ended in March, due mainly to a huge loss at its Softbank Vision Fund. (Shutterstock))
Softbank Group Corp. said Monday that it expects to report a consolidated operating loss of 1.35 trillion yen for fiscal 2019, which ended in March, due mainly to a huge loss at its Softbank Vision Fund. (Shutterstock))
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13 Apr 2020 09:04:20 GMT9
13 Apr 2020 09:04:20 GMT9

TOKYO: Softbank Group Corp. said Monday that it expects to report a consolidated operating loss of 1.35 trillion yen for fiscal 2019, which ended in March, due mainly to a huge loss at its Softbank Vision Fund.

The investment fund is projected to have incurred a loss of some 1.8 trillion yen in the wake of a global stock market tailspin caused by the coronavirus pandemic, the Japanese telecommunications and technology investment group said.

Softbank Group posted a group operating profit of 2,353.9 billion yen in fiscal 2018.

It expects to report a consolidated net loss of 750 billion yen for fiscal 2019, against the previous year's net profit of 1,411.1 billion yen.

The company would thus post annual operating and net losses for the first time in 15 years, with the fiscal 2019 figures seen to be the worst since its establishment in 1981.

The strategy of Softbank Group, which has rapidly expanded investments in startups on the back of a stock market surge, is now at a crossroads, industry watchers said.

Outside the Softbank Vision Fund, the company is expected to book 800 billion yen in nonoperating loss from investments in The We Company of the United States, the operator of the WeWork office-sharing business, and other firms.

A loss is also expected as British satellite company OneWeb, for which Softbank Group is the top shareholder, filed for bankruptcy protection in the United States in late March.

Softbank Group's fiscal 2019 group revenue is seen to have fallen 36 pct from the previous year to 6.15 trillion yen, after its equity stake in fourth-largest U.S. mobile phone carrier Sprint Corp. decreased following its merger with third-ranking T-Mobile US Inc.

JIJI Press

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