SoftBank Shows Falling Profits As Tech Rally Cools – .

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SoftBank Shows Falling Profits As Tech Rally Cools – .


TOKYO— SoftBank Group Corp. said a decline in the value of many holdings in its investment portfolio pushed its profits down in the last quarter, showing that the headwinds are picking up for the world’s largest tech investor.
The Japanese conglomerate, best known for its $ 100 billion Vision Fund, reported net profit of 761.5 billion yen, equivalent to $ 6.9 billion, for the quarter ended in June. That was lower than a year ago and a fraction of the record quarter of January through March, when the company took advantage of booming stock markets to realize multibillion-dollar gains on its investments.
Some of these investments fell in value in the April-June quarter, including Coupang Inc., a Korean e-commerce company listed on the stock exchange in March, and Auto1 Group, a German online used car dealership. which went public in February. In the last quarter, the Vision Fund and its successor lost the equivalent of more than $ 6 billion collectively on the value of nine holdings, including Coupang, as the frenzy over some of the tech’s buzzwords cooled slightly. These companies had helped generate tens of billions of dollars in largely paper-based earnings for both funds.
Even after factoring in these declines, the two funds still recorded the equivalent of about $ 2.6 billion in investment gains in the last quarter.
SoftBank’s own shares closed Tuesday at 6,831 yen, up slightly for the day but down more than 35% from the year’s high.

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