© Reuters. File photo: The SoftBank Group Corp. logo is displayed at the SoftBank World Conference 2017 in Tokyo, Japan, July 20, 2017. REUTERS / Issei Kato
Written by Sam Nossi
TOKYO (Reuters) – SoftBank Group reported a net loss of 397 billion yen ($3.5 billion) in the July-September first quarter, hit by a $10 billion investment loss in its Vision Fund unit as valuations slumped. Technology.
While CEO Masayoshi Son describes SoftBank as a goose that lays “golden eggs,” referring to its stakes in startups going to market, initial public offerings (IPOs) fell and shares in several major assets like online retailer Coupang fell during the quarter.
“The let’s create a value perception strategy by making things public hasn’t really worked this year,” said Kirk Bodry, analyst at Redex Research.
Low valuations in SoftBank’s China portfolio amid a regulatory crackdown continued with its stake in Didi, acquired for $12 billion, currently valued at $7.5 billion.
The group’s largest asset, China e-commerce company Ali Baba (NYSE:), by about a third in the second quarter.
SoftBank’s quarterly net loss compared to a profit of 628 billion yen in the same period a year earlier.
Bright spots for Vision Fund include its portfolio in India with target listings for passenger cars Ola and logistics company Delhivery.
SoftBank has worked to reduce its stakes after the shutdown periods ended, focusing on investing through its second $40 billion Vision Fund from SoftBank itself.
Shares of SoftBank, which have lost about a quarter this year, closed 0.77% lower at 6,161 yen ahead of Monday’s earnings.
(dollar = 113.3500 yen)
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