SoftBank Group posted an unexpected ￥931bn ($6.2bn) net loss in its second quarter, compounding the pain for shareholders and founder Masayoshi Son after one of the group’s biggest bets, WeWork, filed for bankruptcy this week.
It was the fourth consecutive quarter in the red for the Japanese conglomerate, as gains from the initial public offering of chip designer Arm and the investments of its first Vision Fund failed to offset the impact of a weak yen, declines in the valuations of WeWork and other companies, and derivative losses in the three-month period ending in September.
Analysts had expected a net profit of ￥180.8bn, according to S&P Capital IQ. The group had made ￥3tn in net profit in the same quarter last year after selling a stake in Chinese ecommerce group Alibaba.