Japan’s SoftBank sinks to losses as investments sour

May 12, 2022, 2:32 AM | Updated: 2:59 am
Passersby move past a SoftBank shop in Tokyo, Thursday, May 12, 2022. Japanese technology company S...

Passersby move past a SoftBank shop in Tokyo, Thursday, May 12, 2022. Japanese technology company SoftBank Group reported Thursday it has dropped into losses as the value of its investments declined. (AP Photo/Shuji Kajiyama)

(AP Photo/Shuji Kajiyama)

TOKYO (AP) — SoftBank Group sank into losses in the past fiscal year as the value of its global investments declined, the Japanese technology company reported Thursday.

SoftBank Group Corp. reported red ink totaling 1.7 trillion yen ($13 billion) for the fiscal year through March, a reversal from the 4.9 trillion yen profit racked up the previous year.

Annual sales grew 10.5% to 6.2 trillion yen ($48 billion).

Although the company’s portfolio is not directly exposed to the war in Ukraine, global uncertainty as well as inflation and soaring energy costs are likely to have a negative impact on investments for some time, the company said.

Softbank Chief Executive Masayoshi Son told reporters he was going to become more controlled and defensive in investments, focusing on past successes like British semiconductor and software design company Arm.

“You may think that doesn’t sound like the Son you used to know, and it is true we are also going to continue to be aggressive in some ways,” he said.

The intended sale of Arm to Nvidia failed earlier this year due to regulatory problems. But Son said Arm’s future growth promises to be “explosive,” and preparations were underway for an IPO, although the date was not yet set. New executives at Arm China were “the final needed solution,” Son said.

SoftBank acquired Arm in 2016. Arm is a leader in artificial intelligence, IoT, cloud, the metaverse and autonomous driving. Its semiconductor design is widely licensed and used in virtually all smartphones, the majority of tablets and digital TVs. Such technology is considered key for autonomous driving cars.

SoftBank also owns stakes in the SoftBank mobile carrier, Yahoo web services provider, Chinese e-commerce giant Alibaba and vehicle-for-hire company Didi. SoftBank also has funds that include other global investors called Vision Funds.

The online shift in people’s activities that happened because of the coronavirus pandemic will not be reversed, even if COVID-19 restrictions are relaxed, Son said. People will still be doing online shopping, working and entertainment, he said.

When questioned about his views on Tesla CEO Elon Musk’s purchase of Twitter, Son said he had the greatest respect for Musk and expected he would do great things with Twitter. But Son made it clear SoftBank was not getting involved in Twitter.

Son defended his belief in investing in the “information revolution.” Share prices have their ups and downs but in the long run the value of technology companies continues to grow.

“We believe in this continued innovation,” he said.

“SoftBank will take a defensive posture, but we will continue to be on the offensive without spending too much money,” Son said.

___

Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Associated Press

Ex-employee shut down PD website over pay dispute, city says

NEWTON, Mass. (AP) — Officials in a Boston suburb are investigating a former city employee they say shut down the police website during a pay dispute. Newton Mayor Ruthanne Fuller said the former employee, who was the police department information technology director, took down the department website in late June and July. The website instead […]
12 hours ago
In this photo from Friday, July 8, 2022, a sign in a yard in Olathe, Kansas, promotes a proposed am...
Associated Press

Activist offers to pay for Kansas’ recount of abortion vote

TOPEKA, Kan. (AP) — An anti-abortion activist who heads a small hard-right Republican group said he’s offered to pay the expected $229,000 cost of a hand recount of votes from every Kansas county after a decisive statewide vote affirming abortion rights. Mark Gietzen, who leads the group Kansas Republican Assembly, told the Kansas City Star […]
12 hours ago
Associated Press

Police officer in Louisiana run over, dragged by driver

LAFAYETTE, La. (AP) — A police officer in Louisiana is in critical condition after police say a suspect ran over him with a vehicle and dragged him during an attempted traffic stop. Police in Lafayette, Louisiana say the officer was dragged 100 feet (30 meters) early Sunday morning. Lafayette is about 50 miles (80 kilometers) […]
12 hours ago
FILE - Passengers walk to the departures terminal of Hamid Karzai International Airport in Kabul, A...
Associated Press

A year on, ex-Afghan leader defends role in Taliban takeover

ISLAMABAD (AP) — On the eve of the anniversary of the Taliban takeover of Kabul, Afghanistan’s former president on Sunday defended what he said was a split-second decision to flee, saying he wanted to avoid the humiliation of surrender to the insurgents. Ashraf Ghani also told CNN that on the morning of Aug. 15, 2021, […]
12 hours ago
Associated Press

Average US gasoline price falls 45 cents to $4.10 per gallon

CAMARILLO, Calif. (AP) — The average U.S. price of regular-grade gasoline plummeted 45 cents over the past three weeks to $4.10 per gallon. Industry analyst Trilby Lundberg of the Lundberg Survey said Sunday that the continued decline comes as crude oil costs also remain low. “The drop of a dollar per gallon has not been […]
12 hours ago
FILE - Insurrectionists loyal to President Donald Trump try to break through a police barrier, Wedn...
Associated Press

Some Capitol rioters try to profit from their Jan. 6 crimes

Facing prison time and dire personal consequences for storming the U.S. Capitol, some Jan. 6 defendants are trying to profit from their participation in the deadly riot, using it as a platform to drum up cash, promote business endeavors and boost social media profiles. A Nevada man jailed on riot charges asked his mother to […]
12 hours ago

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Ways to prevent clogged drains and what to do if you’re too late

While there are a variety of ways to prevent clogged drains, it's equally as important to know what to do when you're already too late.
...
Mayo Clinic Orthopedics and Sports Medicine

Why your student-athlete’s physical should be conducted by a sports medicine specialist

Dr. Anastasi from Mayo Clinic Orthopedics and Sports Medicine in Tempe answers some of the most common questions.
...
Carla Berg, MHS, Deputy Director, Public Health Services, Arizona Department of Health Services

Vaccines are safe if you are pregnant or breastfeeding

Are you pregnant? Do you have a friend or loved one who’s expecting?
Japan’s SoftBank sinks to losses as investments sour