Japan’s Largest Tech Company SoftBank Reports $23 billion Quarterly Loss
Tech Digest- In the April to June quarter, the Japanese technology corporation SoftBank Group reported a $23.4 billion loss as the value of its investments declined due to widespread concerns about inflation and interest rates.
The loss of 3.16 trillion yen for SoftBank Group Corp. Differed from its profit of 762 billion yen in the same quarter last year. The business announced on Monday that quarterly revenues increased by 6%. Softbank saw losses of 1.7 trillion yen ($13 billion) for the fiscal year that ended in March, which contrasts with a profit of 4.9 trillion yen the year before. Sales increased 10.5% annually, reaching 6.2 trillion yen ($46 billion).
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Although the conflict in Ukraine does not directly affect Softbank’s holdings, the corporation cautioned that global unpredictability, inflation, and rising energy prices would probably impact its profitability. Losses from currency exchange also reduced business profits. The attempted sale of British semiconductor and software business Arm by Softbank to Nvidia earlier this year was unsuccessful. SoftBank is now promising lucrative future growth at Arm, including an IPO, but a deadline for that offering has not yet been set.
Arm was bought by SoftBank in 2016. The IoT, cloud, the metaverse, and autonomous driving are all areas where Arm is a leader. Almost all smartphones, most tablets, and digital TVs employ its widely licensed semiconductor design. Such technology is regarded as essential for autonomous driving automobiles.
Additionally, SoftBank has investments in the Chinese e-commerce behemoth Alibaba, the vehicle-for-hire startup Didi, the SoftBank mobile carrier, Yahoo, and other companies. As part of its Vision Funds, SoftBank also manages funds with other international investors.
