Japanese technology investor SoftBank Group is expected to report a quarterly net loss of 26.9 billion yen ($184.4 million) on Tuesday, according to analyst forecasts. The loss is attributed to early-stage tech startups falling out of favor and widening losses at major portfolio firms.
Financial Performance
The forecast downgrades are partially offset by a stronger yen and the continued rise in the share price of SoftBank’s telecommunications holdings, such as T-Mobile, which finished the quarter up more than 20%, near a record high.
Key Factors
- Early-stage tech startups fell out of favor
- Losses widened at major portfolio firms
- Strengthening yen partially offset losses
- T-Mobile share price rose over 20%
SoftBank’s Vision Fund, a significant contributor to the company’s financial performance, suffered losses as early-stage tech startups lost favor. However, the company’s telecommunications holdings, particularly T-Mobile, performed well, with the share price rising significantly.
The Economic Times reported that SoftBank’s financial performance is expected to be impacted by the challenges faced by its Vision Fund. Despite this, the company’s telecommunications holdings are expected to provide some relief.
