Financial Results / Softbank Group lost $ 17.7 billion in last financial year, the biggest loss in the company's 39-year history

                      The $ 100 billion vision fund was the main contributor to the profit a year ago

The company did not even pay the rent in April

The company has invested $ 1.5 billion in Oyo


Mumbai. Japan's SoftBank Group Corp said its Vision Fund business, including We Work and Uber Technologies Inc., incurred a loss of $ 17.7 billion in the previous fiscal year after reducing the value of the investment. This loss is the largest ever loss in the company's 39-year history.








Operating loss of 1.36 trillion yen

On Monday, the company issued a statement. Accordingly, there was a total operating loss of 1.36 trillion yen and a net loss of 961.6 billion yen in the 12 months ended in March. Masayoshi Son, founder of Tokyo-based conglomerate Softbank, was the main contributor to the profit, a $ 100 billion vision fund a year ago. Now the biggest decline has been in it. Uber's disappointing start last May was followed by a fall in We Work in September and a subsequent rescue by SoftBank.









We Work and One Web also involved in loss

During this period, SoftBank also reported losses from its investments. This includes We Work and satellite operator One Web. Who applied for bankruptcy in March? Last year, We Work's listing effort failed. Softbank then fielded its chief operating officer, Marcello Claire, for a bail out of $ 9.5 billion. Earlier this year the Japanese company terminated a portion of the agreement to buy $ 3 billion in shares from existing shareholders, including former chief executive Adam Newman.









Work from home formula to save rent

Under SoftBank control, We Work is offering exemptions to some tenants to reduce cancellation following the government-mandated COVID-19 quarantine. This has forced non-essential employees to work from home globally. According to experts, the New York-based company has also not paid April month rent in some places. For rent reduction, revenue sharing agreement and other lease amendments are meeting with the owners so that liabilities can be reduced.








There was also loss due to investment by Indian company Oyo

Son's investment in hotel booking service Oyo Hotels & Homes and Uber has fared poorly. Softbank had invested around $ 1.5 billion in Oyo. Last month sent employees on leave to countries outside the Indian market. Because it is struggling to survive the effects of the virus. Uber's stock is trading around 28 percent below its IPO price. When investment worries escalated, Sone rebounded in two stocks.









Shares fell 30 percent in a week

The first 500 billion yen repurchase announced in mid-March also failed to raise SoftBank's stock. When the shares fell more than 30 percent in a week, Son planned a followup of 2 trillion yen. SoftBank has previously used about half of the allocation. The company said on Friday that it had purchased 250.6 billion yen of its stock since March 13 under the original re-purchase scheme.