Silver linings

18 May 2020 By Alec Macfarlane Follow @AlecMac11

A record $12.7 bln annual loss surpassed its warnings. But activist Elliott’s push is yielding results, funds are being spent less giddily and asset sales are on. The board is getting a revamp too, as Alibaba’s Jack Ma exits. The taming of boss Masayoshi Son is gaining traction.

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Japan’s SoftBank Group on May 18 reported an operating loss of 1.36 trillion yen ($12.7 billion) for the year ending March 31, compared to a profit of 2.1 trillion yen in the previous financial year.

The loss was slightly higher than the 1.35 trillion-yen annual loss that SoftBank had forecast on April 30. The losses primarily stemmed from the SoftBank Vision Fund, which suffered net unrealised valuation losses of 1.9 trillion yen.

SoftBank said the fair values of Uber, WeWork and affiliates of the shared workspace company decreased during the period. It also said the total fair value of other portfolio companies decreased significantly in the fourth quarter, primarily due to the impact of the outbreak of Covid-19.

SoftBank shares closed at 4,621 yen on May 18, 1% higher than the closing price of the previous trading session.

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