SoftBank Group plunged into the red in its fiscal Q3 2024 (ending 31 December 2024), with the value of its Vision Funds hit by declining share prices in its vast portfolio.

The company recorded a net loss of JPY369.2 billion ($2.4 billion) compared with a net profit of JPY950 billion in fiscal Q3 2023.

CFO Yoshimitsu Goto (pictured) noted on an earnings call its Vision Fund posted a loss of JPY339 billion and its holding companies booking a JPY108 billion loss due to a JPY377 billion decline in the value on Alibaba shares.

The Vision Funds have investments in about 350 companies, with exposure to China down to 7 per cent of its portfolio.

SoftBank’s bottom-line was also hit by JPY540 billion forex loss.

Net sales rose 3.3 per cent to JPY1.8 trillion.

Revenue at its UK-based chip design company Arm grew 17.4 per cent to JPY140.9 billion. Goto noted royalty revenue in US dollar terms reached a record.

He said SoftBank is looking to set up project financing to meet its commitment for the ambitious $500 billion Stargate plan, an AI joint venture involving OpenAI and Oracle.

Goto added its goal is to “accelerate the AI revolution” by supporting the infrastructure side through the Stargate project, but the amount of funding from SoftBank is yet to be determined.