SoftBank recorded a 1.1 trillion yen quarterly net loss after paying significant upfront costs for infrastructure equipment in the United States. The deficit widely missed analyst expectations compiled by LSEG, which had projected outcomes ranging from a modest loss to a profit. Beyond the operational costs, the firm faced a surge in financing expenses that more than doubled to 462 billion yen during the period. The group's financial future remains tightly linked to the performance of its substantial investments in the broader artificial intelligence industry.
Key points
SoftBank's share price has dropped by nearly half since the beginning of June amid wider…: SoftBank's share price has dropped by nearly half since the beginning of June amid wider market turbulence.
The company's future financial recovery remains closely tied to OpenAI and its anticipate…: The company's future financial recovery remains closely tied to OpenAI and its anticipated initial public offering next year.
Investor skepticism is growing across the artificial intelligence sector due to regulator…: Investor skepticism is growing across the artificial intelligence sector due to regulatory concerns and uncertain financial returns.
Sources checked by our analysis pipeline: 1
TOKYO, Nov 10 : Technology investor SoftBank Group said on Tuesday it booked a net loss of 1.1 trillion yen ($7 billion) in the July-September quarter, hit hard by hefty advance payments it made to support the buildout of data centres in the US.
The result compares with 2.5 trillion yen profit in the same period a year earlier when it logged a huge investment gain on an increase in the value of its stake in ChatGPT-maker OpenAI.
SoftBank's earnings are volatile and difficult to predict. Forecasts from three analysts polled by LSEG had ranged from a profit of 233 billion yen to a loss of 113 billion yen.
SoftBank said it recorded a $3.7 billion loss due to a subsidiary investing in equipment for AI data centre projects in the US with those plans later revised.
Its financing costs also more than doubled to 462 billion yen in the quarter.
The Japanese firm's big bets on artificial intelligence — particularly the $64.6 billion it has spent on its 13 per cent stake in OpenAI — have raised questions about…
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