Tokyo: Softbank Group Corp reported on Tuesday fell 97% in quarterly profit and the fall of an agreement to sell the chip designer arm worth more than $ 60 billion, increasing pressure on Japanese conglomerates to support its slack shares.
Softbank reported that he had squeezed a net profit of 29 billion yen ($ 251 million) in the October quarter to December, compared with a record 1.17 trillion Profit Yen booked a year earlier as a portfolio rally.
Separately, Softbank announced that sales of arms to Nvidia had fallen in the midst of regulatory obstacles in a large setback with a fundraising plan.
The Japanese investment giant said it would recognize the farewell costs of $ 1.25 billion which had been stored by Nvidia as a profit in the fourth quarter.
The Vision Fund Unit posted an increase in investment of 111.45 billion yen during the quarter, a sharp decline of 1.4 trillion yen received a year earlier.
“Although some public companies experienced its value, there was a significant follow-up funding rate in which institutional investors outside the lead round”, Vision Navneet Govil’s Financial Officer told Reuters.
Many Softbank portfolio companies are traded under their list price, with office sharing companies, Work, Ridgeer Grab and the Auto1 used car platform all falling during the quarter.
Group’s exposure to China has also affected performance, because the regulator takes action against technology companies.
Giant e-commerce alibaba stocks, where Softbank has shares, down one-fifth in three months to the end of December.
These assets are used by groups for loans due to investing through the Vision Fund unit, which runs a $ 100 billion vision fund and a smaller second fund and has become a priority for the group.
2 vision funds, which have $ 51 billion in committed capital at the end of December, has invested $ 43.1 billion in more than 200 startups.
Industrial observers have recorded the termination between foaming and skeptical private markets in the public market.
“We see some healthy return balancing …
at some end of the market more extreme,” Govil said.
“We did reject several transactions because we thought the rich assessment.” Income comes at the time of the river for conglomerates as senior executives out of the company, including the Chief Operating Officer of Marcelo Claure, who leads the restructuring of the archorming and launched the Group Latin American focus fund.
Softbank launches a purchase of 1 trillion yen in November.
Group shares closed down 0.9% before profit and had lost around half since the highest in March last year.