SoftBank Group Corp, a Japanese conglomerate, reported a narrower annual loss of ¥970 billion ($7.18 billion) for the year ended March 31, compared to a loss of ¥1.7 trillion in the previous year, thanks to a capital raise from its stake in Alibaba.
CEO Masayoshi Son’s ambitious attempt to lead the tech investment industry suffered a series of setbacks after investments made through its first Vision Fund and second fund slumped. To address the issue, Son has focused on strengthening the balance sheet, cutting his stake in Alibaba and concentrating on the Arm chip designer’s listing.
SoftBank’s Vision Fund unit had a fifth consecutive quarter of investment loss, though the loss was lower than previous quarters. SoftBank has been in defensive mode, with the Vision Fund unit making only 25 new deals over the past year, focusing on increasing capital buffers by raising $35.46 billion through prepaid forward contracts using Alibaba shares during the fiscal year. SoftBank’s shares closed down 0.85% ahead of earnings and have fallen almost 9% this year.