SoftBank Posts Record $8.9 Billion Loss Amid Pandemic and WeWork Woes
SoftBank Group reports a massive $8.9 billion annual net loss as the coronavirus pandemic worsens the financial impact of its troubled WeWork investment. The Japanese conglomerate warns that ongoing uncertainty will plague its investment business in the coming year.
SoftBank Group reports a record annual net loss of 961.6 billion yen, or $8.9 billion, as the coronavirus pandemic severely impacts its bottom line. This staggering loss exceeds the company's own recent forecasts of $8.4 billion and highlights the deep financial struggles facing the Japanese telecom and investment giant.
The global health crisis compounds existing problems caused by SoftBank's heavy investment in the troubled office-sharing startup WeWork. Operating losses for the year reach 1.36 trillion yen, slightly edging out the company's previous estimate of 1.35 trillion yen as market conditions continue to deteriorate.
Led by chief Masayoshi Son, the conglomerate admits it is "adversely affected" by the ongoing crisis and issues a cautious warning about the future. SoftBank expects that if the pandemic continues, significant uncertainty will remain in its investment businesses throughout the next fiscal year.