SoftBank reports operating loss for the first time 

SoftBank Group is the second-largest publicly traded company in Japan

SoftBank

SoftBank reports operating loss for the first time. Source: flickr.com

According to LearnBonds, SoftBank revealed it is expecting to book a $12.5 billion operating loss by the end of its fiscal year which ends in March 2020. As was explained, that’s a result of a deterioration in the current market environment.

This negative result was primarily caused by a $16.7 investment loss coming from the group’s massive $100 billion Vision Fund, which is engaged in high-profile startup investments including Uber and WeWork
Masayoshi Son, SoftBank founder

The data found that it’s the first time the company reports an annual operating loss. However, analysts were already expecting a big drop in profitability resulting from the fund’s bad bets. For instance, its investment on satellite operator OneWeb, which recently filed from Chapter 11 bankruptcy, causing the company a $6.9 billion net loss.

SoftBank’s shares in the Japanese stock market ended the day trading at $39, losing 3.38%, while in the US market the company’s stock was losing 5% in morning trading, according to information.

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