SoftBank Reports $13 Billion Annual Loss, Hit by Tech-Share Slump

TOKYO — Japanese technology investor SoftBank Group Corp.

9984 -8.03%

on Thursday reported its biggest annual loss in its four-decade history as a result of a global sell-off in tech stocks.

SoftBank, known for its $100 billion Vision Fund, reported a net loss of 1.71 trillion yen, or $13.2 billion, for the year ended March 31. This is the loss. biggest for the whole year, topping a record set two years ago, and following a net profit of nearly 5 trillion yen in the previous financial year.

The company’s results tend to fluctuate widely as they closely follow the volatile movements of tech stocks in which SoftBank has invested, including in US companies such as Uber Technologies. Inc.

UBER -4.65%

and DoorDash Inc.

DASH -13.16%

Interest rate hikes by the Federal Reserve and other central banks, as well as tighter Chinese government regulations on the tech industry, have affected the valuation of high-growth tech stocks. .

For the year ended March 31, SoftBank reported a loss of 3.74 trillion yen, or $29 billion, on investments in Vision Fund 1, Vision Fund 2 and other funds.

The publicly listed stocks that comprise the majority of the Vision Fund have more than halved since the start of the year. Shares of Chinese ride-hailing leader Didi Global Inc.,

of which the Vision Fund holds shares, has fallen more than 80% since its debut on the New York Stock Exchange last summer. Didi is planning to delist on the NYSE.

Shares of e-commerce giant Alibaba Group Holding Ltd.

SoftBank Group’s most valuable holdings have fallen about 50% in the past financial year.

Shares of SoftBank fell 8% on Thursday in Tokyo trading, which ended before the announcement of the results. Thursday’s close was 4,491 yen, less than half the level a year ago.

Write letter for Megumi Fujikawa at megumi.fujikawa@wsj.com

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https://www.wsj.com/articles/softbank-reports-13-billion-annual-loss-hit-by-tech-share-slump-11652339726?mod=rss_markets_main SoftBank Reports $13 Billion Annual Loss, Hit by Tech-Share Slump

Edmund DeMarche

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