SoftBank Group Posts Surprise First-Quarter Loss

By Megumi Fujikawa

TOKYO--Japanese technology investor SoftBank Group sank into the red again in the latest quarter, dragged by losses at its main investment vehicle.

SoftBank on Wednesday posted a net loss of 174.28 billion yen, equivalent to about $1.21 billion, for its first quarter ended June. That compared with a net loss of Y477.62 billion in the same period a year earlier and the Y86.6 billion net profit expected by analysts in a Visible Alpha poll.

The Vision Funds segment posted a business loss of Y204.3 billion, compared with a Y61.04 billion profit in the year-earlier period.

After years of playing a defensive strategy, Chief Executive Masayoshi Son has said the company would look for investment opportunities more actively in the field of artificial intelligence.

But the outlook remains uncertain due to the recent global stock market turmoil, which has hit the technology sector especially hard. Shares of U.K. chip-designer Arm, SoftBank's subsidiary which Son has been focusing on, has declined nearly 40% from its July peak. Last week, the company left its full-year revenue forecast unchanged while reporting robust revenue for the first quarter.

SoftBank's own share price has fallen by about one-third from its peak in July, with the Nikkei Stock Average on Monday recording its worst one-day percentage drop since 1987.

Write to Megumi Fujikawa at megumi.fujikawa@wsj.com

(END) Dow Jones Newswires

August 07, 2024 02:46 ET (06:46 GMT)

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