SoftBank losses $13.2 billion amid selloff

SoftBank Group Corporation (OTCMKTS: SFTBY), one of the most effective and aggressive high-tech investors in the world, claimed that it lost more cash in the previous financial year than it had ever experienced before. The $13.2 billion loss will reduce the company’s pace of making new investments. 

The rough financial results recorded by the conglomerate based in Tokyo comes as investors worldwide are trying to deal with dramatic pullbacks in the technology stocks, particularly the newer, high-growth corporations that were attractive to investors until recently. 

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

Financial highlights

SoftBank recorded an overall loss of $13.2 billion in the financial year ended March 31st, including capital gains other than its tech-based funds. This loss marked the biggest full-year loss the company has ever experienced, toppling previous financial records it set 24 months ago. 

In a video presentation by SoftBank Chief Executive Officer and Chairman Masayoshi Son, the CEO opened by defending the company’s financial conditions, saying SoftBank’s debt is manageable. He claims that its cash holding were enough to cover incoming bond maturities. 

These cash holdings got a boost through the sale of shares and borrowing. These efforts were meant to address investor concerns about the heavy debt load. 

Moving forward

Mr Son said:

We put up an umbrella when it rains. We need to think flexibly, depending on the situation. But it is the time to strengthen our defense now.

The CEO claimed that it would concentrate on chip designer and manufacturer Arm to help SoftBank increase its profit margins without having to spend more cash. He claimed they expect chip demand to continue to grow. 

Mr. Son also confirmed that the company’s wholly-owned Arm operation based in China has gone back to normal business operations after the dispute with a previous Chief Executive Officer. Mr. Son said:

We will be much more careful when we invest new money.

The CEO delivered the financial results in his sensational and simplistic style.