- 15th May 2020
- Posted by: Hakeem
- Category: Finance & accounting
SoftBank Group Corp. is reporting annual earnings results on Monday. And what a difference a year makes.
About the same time last May, the company posted its highest ever operating profit thanks to Masayoshi Son’s enormous bets on technology startups like WeWork, Uber Technologies Inc. and Oyo Rooms. “Our time has finally come,” Son told reporters and analysts at an earnings briefing in May 2019.
Instead, the year that followed was one of the worst in the company’s history: Uber’s disappointing initial public offering that May was followed by the implosion of WeWork in September and its subsequent rescue by SoftBank. Now Son’s investment portfolio, weighted heavily toward the sharing economy, is looking increasingly shaky as the coronavirus pandemic dries up capital available for money-burning startups.
SoftBank expects to book a record 1.35 trillion yen ($12.5 billion) operating loss for the fiscal year ended March 31 when it reports results on Monday. The company’s Vision Fund business, technology investments that contributed more than half of the conglomerates profit a year ago, has swung to a record 1.8 trillion yen loss. The conglomerate’s overall net loss will reach 900 billion yen, SoftBank said last month in a preliminary earnings statement.
Continue Reading: https://www.bloomberg.com/graphics/2020-softbank-heads-for-record-loss/