SoftBank Group posted a quarterly loss on Monday (8), when its Vision Fund unit took a $10 billion hit as the share price of its portfolio companies slumped and the brunt of China’s regulatory crackdown on trading companies. technology.
Even as the value of its assets plummeted, the Japanese technology conglomerate said its shares were undervalued and it would spend up to 1 trillion yen ($9 billion) to buy back nearly 15% of its shares.
“We’re in the middle of a blizzard,” Son said at a news conference, adding that he was “not proud” of the Vision Fund’s performance for the quarter. Even so, he said the company is taking firm steps to double the number of “golden eggs” compared to last year.
The group’s biggest asset, Chinese e-commerce company Alibaba, saw its market value drop by about a third in the second quarter.
Son says the change in the value of the group’s assets, rather than earnings, is the main measure by which performance should be measured. Asset values tumbled 23 percent to $187 billion in the three months to September.
Although SoftBank shares trade at about 50% off, less than a record interval that sparked the launch of an eventual 2.5 trillion yen repurchase last year, the conglomerate has capital to make repurchases now, he said. Son.
The group had a net loss of 398 billion yen ($3.5 billion) reversing a profit of 628 billion yen a year earlier.
Reference: CNN Brasil
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