SoftBank forecasts wider loss on WeWork write-off - Mobile World Live

SoftBank forecasts wider loss on WeWork write-off

30 APR 2020

SoftBank issued a revised forecast for its fiscal year ending 31 March, predicting a sharply wider net loss as a result of larger-than-expected losses from its own investments, including a JPY700 billion ($6.57 billion) write-off on its stake in WeWork.

The company now expects to book a net loss of JPY900 billion for fiscal 2019, up from its previous estimate of JPY750 billion. In fiscal 2018, it reported a net profit of JPY1.41 trillion.

In a statement, SoftBank said the deterioration in income before tax compared with the previous forecast is primarily due to the expected increase in non-operating losses for investments held outside of the Vision Fund, such as WeWork.

The non-operating losses were previously expected at about JPY800 billion, but are forecast to total more than JPY1 trillion, it said. The losses from the office space sharing company relate to loan commitments and financial guarantees.

On 13 April, the company estimated it would post a record deficit in fiscal 2019, as it expects to book a JPY1.8 trillion loss from its troubled Vision Fund.

There was no change in its sales forecast, with revenue expected to fall 36 per cent year-on-year to JPY6.15 trillion.

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Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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