The Japanese telecoms group Softbank has recorded an operating loss for the first time in 14 years in the past quarter. From July to September, the minus amounted to 704 billion yen, the equivalent of about 5.8 billion euros, said Softbank.
In the half-year balance sheet, the net profit on the key date September 30 melted by about 50 percent to 421.5 billion yen, the equivalent of 3.5 billion euros. Sales remained at 4.65 trillion yen compared to the same period last year.
The Japanese had previously tried to save the stumbling start-up WeWork with another $ 9.5 billion in the form of loans and the purchase of shares. The start-up is important to Softbank, as the major shareholder has pumped more than $ 10 billion in WeWork.
Softbank founder: situation at WeWork rated "wrong"
Group CEO and founder Masayoshi Son admitted that he had "misjudged the situation at WeWork" in many ways and looked away from WeWork founder Adam Neumann's management issues. Basically, the start-up is a solid company.
Softbank is investing $ 100 billion in the Vision Fund in start-ups such as US office space provider WeWork and Uber, both of which went public this year. The Vision Fund operationally posted 970 billion yen ($ 8.9 billion) loss. The depreciation of the investments in WeWork and Uber has not yet been included in the balance sheet.
