SoftBank Group reported a loss of USD 5.22 billion for the quarter ending 30 September, 2023, marking its fourth consecutive quarter of losses. As per reports, the loss can be attributed to factors such as finance costs and foreign exchange losses due to a weaker yen. Despite this, SoftBank’s net asset value increased by 6 per cent to USD 0.11 billion.
SoftBank Vision Fund (SVF) 1 reported cumulative returns of USD 104.4 billion on USD 89.6 billion investments, resulting in a gross gain of USD 14.8 billion. However, SVF1 also recorded a $3.86 billion investment loss, excluding proceeds from the sale of shares in Arm. Private portfolio companies within SVF1 saw a 4.6 per cent decrease, primarily due to markdowns of underperforming companies.
SVF2, on the other hand, reported USD 31.5 billion in cumulative returns on USD 52.2 billion investments, but recorded a gross loss of USD 20.7 billion. Public portfolio companies within SVF2 saw a significant decline of 28.9 per cent, primarily due to share price decrease in companies like WeWork. Private portfolio companies within SVF2 also saw a 2.7 per cent decline, mainly due to markdowns of weaker-performing companies.
Outside of investments, SoftBank-backed GlobalBees posted a standalone loss of Rs 6.15 crore in the financial year 2022-23. On a positive note, SoftBank formed a joint venture with OYO to launch a premium hotel chain in India named Mountainia, focusing on Tier II cities. The joint venture aims to introduce 5- and 4-star hotels under the brand name ‘Sunday.’
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