SoftBank reports US$7.1 billion quarterly loss as AI equipment costs weigh
Advance payments for power equipment reached US$9.5 billion by September, while the company’s six-month interest expenses more than doubled.
A US$3.7 billion writedown on prepaid power equipment for American AI data centers weighed on SoftBank Group’s July–September results, as the company recorded a ¥1.12 trillion (US$7.1 billion) net loss. SoftBank changed its plans after paying for the equipment.
The quarterly result contrasted with a ¥2.5 trillion profit a year earlier and a ¥129 billion profit forecast by analysts, Bloomberg reported. CNBC reported that revenue of ¥2.22 trillion surpassed analyst expectations.
SoftBank said it had prepaid US$9.5 billion by the end of September for power generation equipment, seeking to avoid expected shortages. Reuters quoted chief accounting officer Kazuko Kimiwada as saying fees were not recoverable when orders were canceled. Future purchases over ten years could qualify for rebates of up to US$2.1 billion.
Borrowing costs also increased: Bloomberg reported interest expenses of ¥676 billion over the six-month period ending in September, more than twice the year-earlier level. According to Reuters, quarterly fundraising reached a record US$56.5 billion, including a term loan of US$11.87 billion and a dollar bond of US$10 billion.
SoftBank said its finances remained within the limits it sets. Chief financial officer Yoshimitsu Goto put the September-end loan-to-value ratio at 15.9%, against the company’s ceiling of 25%.
The company valued its OpenAI investment at US$99.6 billion at September’s end, compared with cumulative investment of US$54.6 billion. Separately, the Vision Fund segment recorded a ¥81.6 billion loss, with a US$1.3 billion ByteDance gain outweighed by declines in listed holdings including Coupang and Grab.
