SoftBank Group Corp. has announced its financial results for the first quarter of FY2024, ending June 30, 2024, with the company posting a net loss of ¥174.3 billion (US$1.2 billion), despite achieving an investment gain of ¥559.7 billion (US$3.5 billion). This performance underscores the challenges and opportunities within its investment-heavy business model, particularly through its Vision Funds.
During the quarter, SoftBank recorded net sales of ¥1,701.7 billion (US$11.2 billion), reflecting a year-over-year increase of ¥144.2 billion (US$947 million). The company’s gains from investments, especially in its Vision Funds, marked a notable turnaround, swinging from a loss of ¥699 billion (US$4.6 billion) last year to a profit of ¥559.7 billion (US$3.5 billion). This was driven by strategic divestments and portfolio rebalancing, including the sale of stakes in companies like SenseTime and Paytm, which contributed to a total monetization of ¥371.1 billion (US$2.4 billion) in the quarter.
SoftBank’s financial strategy includes maintaining a low Loan-to-Value (LTV) ratio, which stood at 7.8% as of June 30, 2024, and leveraging its substantial cash reserves of ¥4.6 trillion (US$30 billion) to fund AI-focused investments. Despite these financial setbacks, the company continues to push forward with its commitment to Artificial Super Intelligence (ASI) and technology-driven ventures, aiming for long-term growth in AI sectors and capitalizing on the evolving tech landscape.
