SoftBank Group Corp reported a smaller net loss for the first quarter ending June 30, 2021, but missed market estimates for a profit, hurt by investments in its Vision Fund.
The Japanese conglomerate posted a net loss of 332 billion yen ($3.03 billion) for the first quarter, compared with a loss of 961 billion yen in the same period a year earlier. However, analysts had expected SoftBank to post a net profit of 73 billion yen for the quarter, according to Refinitiv.
While the loss for the quarter was significantly lower than the previous year, SoftBank did not meet market expectations due to weaker returns from the Vision Fund units that investments in global technology startups. SoftBank recorded a 191 billion yen gain for its Vision Funds for the quarter, lower than market targets.
SoftBank said income from investment gains fell due to decreases in the share prices of several portfolio companies held by the Vision Fund. However, the company still sees potential for the Vision Fund over the medium- to long-term.
