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Softbank reports 1st profit in 4-yrs; India bets Ola, Swiggy weigh on SVF2
For the fourth quarter, the company posted a net income of ¥546 billion, rebounding from a loss in the previous quarter.
Despite the overall positive performance, some of SoftBank's India investments — housed under its Vision Fund 2 (SVF2) — weighed on results.
SVF2 reported an investment loss of ¥561.7 billion (approximately $3.6 billion). The company stated that the fair value of investments held at the end of the fourth quarter had declined by 2.7 per cent from the previous quarter.
In its results presentation, SoftBank said: 'Down 21.7% quarter-on-quarter for public portfolio companies, mainly due to share price declines in Swiggy and Ola Electric Mobility.'
Speaking during an analyst call, SoftBank Director Yoshimitsu Goto said: '… hopefully we will be able to see a good recovery from there.'
Shares of both Ola and Swiggy declined nearly 40 per cent during the January–March period.
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