SoftBank Group Q3: Profit falls 99%; misses analyst estimates

apan’s SoftBank Group Corp said on Wednesday its third-quarter operating profit fell 99%, well short of analyst estimates, pulled down by losses at the …

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SoftBank Group’s quarterly profit wiped out by Vision Fund losses

Japan’s SoftBank Group Corp said on Wednesday its third-quarter operating profit fell 99%, well short of analyst estimates, pulled down by a second …

Quarterly profit at SoftBank Group Corp was almost wiped out as the Japanese technology giant was hit for a second straight quarter by losses at its $100 billion Vision Fund.

Wednesday’s dismal results could further dampen investor enthusiasm for founder Masayoshi Son’s big bets on untested start-ups. While Son told a news conference SoftBank had turned a corner, he also said he has been forced to scale back a second Vision Fund while investing with only SoftBank’s own capital.

That marks a major climbdown from July, when SoftBank said it had attracted $108 billion in pledges for a second mega-fund.

More pointedly, it shows how the bailout of start-up WeWork last year and other missteps have put a chill on the tech investing scene and given SoftBank shareholder Elliott ammunition to lobby for change.

“We have caused a lot of concern,” Son said in Tokyo following the results, adding he needs to “give everyone piece of mind” to secure outside funds for Vision Fund 2.

Group profit was 2.6 billion yen ($24 million) in the October-December quarter versus 438 billion yen a year before. The Vision Fund posted an operating loss of 225 billion yen ($2.05 billion) for the quarter compared with a 176 billion yen profit in the same period a year earlier.

But Son, known for an ebullience and charisma that is still rare in corporate Japan, said the company’s performance was already improving.

“The tide is turning,” he said.

Big stake

“Softbank should focus on one thing, shareholder value creation,” said Jeffries analyst Atul Goyal in a note to clients ahead of the earnings.

Son pointed to a rally in prices at the Vision Fund’s handful of listed investments and news overnight that a U.S. federal judge had rejected an antitrust challenge to the proposed merger of SoftBank’s Sprint Corp and T-Mobile US Inc.

Shares of SoftBank finished up 12% in Tokyo before the results and after the U.S. court decision.

Son has long argued SoftBank’s shares are undervalued, a position shared by U.S. hedge fund Elliott Management, which has recently emerged as a prominent shareholder. Elliott, one of the world’s best known activist investors, is pushing for changes including $20 billion in stock buybacks, sources said last week.

SoftBank has held discussions with Elliott and is aligned on improving shareholder value, Son said, adding that while open to potentially buying back shares, he was in “no hurry” to sell part of a 26% shareholding in Alibaba to fund buybacks.

The Vision Fund, which is backed by Saudi Arabia and has single-handedly changed the face of tech investing, said it had invested $74.6 billion in 88 companies as at the end of December, when those investments were worth $79.8 billion.

Analysts have said it is difficult to evaluate SoftBank’s performance due to a lack of disclosure around Vision Fund’s internal valuations.

Son’s investing credentials took a hit in the August-September quarter when the Vision Fund recorded an $8.9 billion operating loss.

Since then, a slew of portfolio companies – from hotel-booking platform Oyo to cloud robotics firm CloudMinds – have cut jobs and come under pressure to demonstrate the long-term viability of their business models.

The fund itself has also lost key employees.

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SoftBank Group quarterly profit wiped out by Vision Fund losses

TOKYO (Reuters) – Japan’s SoftBank Group Corp said on Wednesday its third-quarter operating profit fell 99%, well short of analyst estimates, pulled …

TOKYO (Reuters) – Quarterly profit at SoftBank Group Corp (9983.T) was almost wiped out as the Japanese technology giant was hit for a second straight quarter by losses at its $100 billion Vision Fund.

Wednesday’s dismal results could further dampen investor enthusiasm for founder Masayoshi Son’s big bets on untested start-ups. While Son told a news conference SoftBank had turned a corner, he also said he has been forced to scale back a second Vision Fund while investing with only SoftBank’s own capital.

That marks a major climbdown from July, when SoftBank said it had attracted $108 billion in pledges for a second mega-fund.

More pointedly, it shows how the bailout of start-up WeWork last year and other missteps have put a chill on the tech investing scene and given SoftBank shareholder Elliott ammunition to lobby for change.

“We have caused a lot of concern,” Son said in Tokyo following the results, adding he needs to “give everyone piece of mind” to secure outside funds for Vision Fund 2.

Group profit was 2.6 billion yen ($24 million) in the October-December quarter versus 438 billion yen a year before. The Vision Fund posted an operating loss of 225 billion yen ($2.05 billion) for the quarter compared with a 176 billion yen profit in the same period a year earlier.

But Son, known for an ebullience and charisma that is still rare in corporate Japan, said the company’s performance was already improving.

“The tide is turning,” he said.

BIG STAKE

“Softbank should focus on one thing, shareholder value creation,” said Jeffries analyst Atul Goyal in a note to clients ahead of the earnings.

Son pointed to a rally in prices at the Vision Fund’s handful of listed investments and news overnight that a U.S. federal judge had rejected an antitrust challenge to the proposed merger of SoftBank’s Sprint Corp (S.N) and T-Mobile US Inc (TMUS.O).

Shares of SoftBank finished up 12% in Tokyo before the results and after the U.S. court decision.

Son has long argued SoftBank’s shares are undervalued, a position shared by U.S. hedge fund Elliott Management, which has recently emerged as a prominent shareholder. Elliott, one of the world’s best known activist investors, is pushing for changes including $20 billion in stock buybacks, sources said last week.

SoftBank has held discussions with Elliott and is aligned on improving shareholder value, Son said, adding that while open to potentially buying back shares, he was in “no hurry” to sell part of a 26% shareholding in Alibaba (BABA.N) to fund buybacks.

The Vision Fund, which is backed by Saudi Arabia and has single-handedly changed the face of tech investing, said it had invested $74.6 billion in 88 companies as at the end of December, when those investments were worth $79.8 billion.

Analysts have said it is difficult to evaluate SoftBank’s performance due to a lack of disclosure around Vision Fund’s internal valuations.

Son’s investing credentials took a hit in the August-September quarter when the Vision Fund recorded an $8.9 billion operating loss.

Since then, a slew of portfolio companies – from hotel-booking platform Oyo to cloud robotics firm CloudMinds – have cut jobs and come under pressure to demonstrate the long-term viability of their business models.

FILE PHOTO: The logo of SoftBank Group Corp is displayed at SoftBank World 2017 conference in Tokyo, Japan, July 20, 2017. REUTERS/Issei Kato/File Photo

The fund itself has also lost key employees.

($1 = 109.9900 yen)

Reporting by Sam Nussey; Editing by Christopher Cushing, David Dolan and Mark Potter

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SoftBank Group nine-month net profit down nearly 70 pct

Major Japanese technology investor SoftBank Group said Wednesday its net profit plunged nearly 70 percent for the nine months to December as …

Major Japanese technology investor SoftBank Group said Wednesday its net profit plunged nearly 70 percent for the nine months to December as investments in share companies such as WeWork and Uber took a hit.

Its bottom-line profit lost 69.0 percent to 476.6 billion yen ($4.3 billion) for the period as the firm suffered an operating loss of 13.0 billion yen.

The operating loss was largely “due to a decrease in the fair values of investments including Uber and WeWork and its three affiliates,” the company said in a statement.

The company did not publish its outlook for the year to March 2020.

The disappointing results follow a turbulent period for the firm and CEO Masayoshi Son has faced criticism over his commitment to start-ups some say are overvalued and lack clear profit models.

SoftBank has taken stakes in some of Silicon Valley’s hottest start-ups through its $100 billion Vision Fund.

The group last year announced its long-mooted Vision Fund 2, again targeting around $100 billion, but investors have been slower to commit this time around.

In the second quarter to September, the group reported an operating loss of 704.4 billion yen, the worst in its history.

But it returned to the black for the three months to December, reporting 2.6 billion yen in operating profit, still down from 438.3 billion yen a year earlier.

Shares in SoftBank have risen recently on news US hedge fund Elliott Management has built a more-than-$2.5 billion stake in the group.

On Wednesday, stocks rose another 11.88 percent after news that the T-Mobile and Sprint merger had been approved — more than two years after it was first announced.

The merger reduces the risk that SoftBank will need to fund its unit Sprint, which will help improve the parent firm’s balance sheet, analysts said.

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As Dicerna Pharmaceuticals (DRNA) Stock Rose, Holder Longwood Capital Partners Raised Its …

… with their article: “Tracking Seth Klarman’s Baupost Group Holdings – Q2 2019 Update – Seeking Alpha” published on August 16, 2019, Finance.

Dicerna Pharmaceuticals, Inc. (NASDAQ:DRNA) Logo

Longwood Capital Partners Llc increased its stake in Dicerna Pharmaceuticals Inc (DRNA) by 16.93% based on its latest 2019Q2 regulatory filing with the SEC. Longwood Capital Partners Llc bought 55,675 shares as the company’s stock rose 8.52% . The institutional investor held 384,500 shares of the health care company at the end of 2019Q2, valued at $6.06M, up from 328,825 at the end of the previous reported quarter. Longwood Capital Partners Llc who had been investing in Dicerna Pharmaceuticals Inc for a number of months, seems to be bullish on the $998.74M market cap company. The stock decreased 1.68% or $0.25 during the last trading session, reaching $14.61. About 249,568 shares traded. Dicerna Pharmaceuticals, Inc. (NASDAQ:DRNA) has risen 9.57% since September 14, 2018 and is uptrending. It has outperformed by 9.57% the S&P500. Some Historical DRNA News: 08/03/2018 – DICERNA PHARMACEUTICALS – BELIEVES IT HAS SUFFICIENT CASH TO FUND EXECUTION OF CURRENT CLINICAL AND OPERATING PLAN THROUGH 2019; 17/04/2018 – STAT Plus: Trade secrets battle between Alnylam, Dicerna is just one of many; 09/04/2018 – Dicerna Presenting at Conference Tomorrow; 20/04/2018 – Biotech companies Alnylam, Dicerna settle trade secrets case; 20/04/2018 – DICERNA PHARMACEUTICALS INC – ALNYLAM WILL DISMISS ALL CLAIMS OF “TRADE SECRET MISAPPROPRIATION” & OTHER RELATED CLAIMS BROUGHT IN COURT AGAINST CO; 20/04/2018 – ALNYLAM REACHES SETTLEMENT PACT WITH DICERNA PHARMACEUTICALS; 08/03/2018 – DICERNA SEES SUFFICIENT CASH TO FUND DEVELOPMENT THRU 2019; 20/04/2018 – DICERNA PHARMACEUTICALS – ALNYLAM WILL DISMISS ALL CLAIMS OF “TRADE SECRET MISAPPROPRIATION” & OTHER RELATED CLAIMS BROUGHT IN COURT AGAINST CO; 19/04/2018 – DJ Dicerna Pharmaceuticals Inc, Inst Holders, 1Q 2018 (DRNA); 30/05/2018 – Dicerna Doses First Primary Hyperoxaluria Patient with DCR-PHXC in Group B Portion of PHYOX Phase 1 Clinical Trial

Manor Road Capital Partners Llc increased its stake in Liberty Global Plc (Call) (LBTYK) by 75.68% based on its latest 2019Q2 regulatory filing with the SEC. Manor Road Capital Partners Llc bought 1.40M shares as the company’s stock rose 0.89% . The hedge fund held 3.25 million shares of the television services company at the end of 2019Q2, valued at $86.22M, up from 1.85M at the end of the previous reported quarter. Manor Road Capital Partners Llc who had been investing in Liberty Global Plc (Call) for a number of months, seems to be bullish on the $20.16 billion market cap company. The stock increased 0.33% or $0.09 during the last trading session, reaching $27.51. About 4.41 million shares traded or 1.30% up from the average. Liberty Global Plc (NASDAQ:LBTYK) has declined 0.99% since September 14, 2018 and is downtrending. It has underperformed by 0.99% the S&P500. Some Historical LBTYK News: 09/05/2018 – Vodafone Group to Buy Liberty Assets in Germany, Hungary, Romania, Czech Republic; 30/05/2018 – European Commission Conditionally Approves Liberty Global’s Ziggo Buy; 23/05/2018 – Vodafone Is Said to Offer Bonds to Finance Liberty Global Deal; 23/04/2018 – Telecom Paper: Vodafone close to buying Liberty Global assets in Germany, East Europe – report; 09/05/2018 – ♫ Reuters Insider – U.S. Morning Call: Iran deal fallout; Liberty Global and Monster Beverage loses its fizz; 09/05/2018 – VODAFONE GROUP PLC VOD.L – TRANSACTION IS NOT SUBJECT TO VODAFONE OR LIBERTY GLOBAL SHAREHOLDER APPROVALS; 09/05/2018 – Vodafone challenges Deutsche Telekom with $21.8 bln Liberty deal; 09/05/2018 – Vodafone to pay $21.8 bln for Liberty assets to boost European presence; 23/03/2018 – LIBERTY GLOBAL PLC – AGREEMENT TO ACQUIRE MULTIMEDIA POLSKA S.A. HAS BEEN TERMINATED – SEC FILING; 08/05/2018 – Vodafone nears €18bn game-changing Liberty Global deal

More notable recent Dicerna Pharmaceuticals, Inc. (NASDAQ:DRNA) news were published by: Nasdaq.com which released: “After-Hours Earnings Report for March 11, 2019 : ADT, COUP, SFIX, DRNA, AVD, PETQ, CCXI, LXFR, MG, OXFD, FRTA, KALA – Nasdaq” on March 11, 2019, also Finance.Yahoo.com with their article: “Here’s What Hedge Funds Think About Dicerna Pharmaceuticals Inc (DRNA) – Yahoo Finance” published on June 11, 2019, Seekingalpha.com published: “Dicerna Pharmaceuticals (DRNA) Presents At Cowen And Company 39th Annual Health Care Conference – Slideshow – Seeking Alpha” on March 12, 2019. More interesting news about Dicerna Pharmaceuticals, Inc. (NASDAQ:DRNA) were released by: Seekingalpha.com and their article: “Dicerna prices follow-on common stock offering – Seeking Alpha” published on September 07, 2018 as well as Seekingalpha.com‘s news article titled: “Dicerna Pharmaceuticals (DRNA) To Present At SVB Leerink 8th Global Healthcare Conference – Slideshow – Seeking Alpha” with publication date: March 01, 2019.

Investors sentiment decreased to 1.52 in 2019 Q2. Its down 0.07, from 1.59 in 2019Q1. It is negative, as 10 investors sold DRNA shares while 21 reduced holdings. 19 funds opened positions while 28 raised stakes. 45.15 million shares or 2.31% less from 46.22 million shares in 2019Q1 were reported. Fosun Int Limited invested in 188,673 shares. 63,923 are owned by Rafferty Asset Limited Liability. Fmr Ltd Limited Liability Company invested in 0% or 667,948 shares. Northern Corporation stated it has 683,682 shares. Natl Bank Of Montreal Can, Ontario – Canada-based fund reported 4,298 shares. Legal General Grp Inc Pcl reported 0% of its portfolio in Dicerna Pharmaceuticals, Inc. (NASDAQ:DRNA). Td Asset Mngmt has 53,480 shares. Ny State Common Retirement Fund has invested 0% in Dicerna Pharmaceuticals, Inc. (NASDAQ:DRNA). Acuta Partners Limited Liability holds 384,500 shares or 2.15% of its portfolio. Birchview Limited Partnership reported 0.43% of its portfolio in Dicerna Pharmaceuticals, Inc. (NASDAQ:DRNA). Dafna Capital Ltd Liability reported 118,314 shares. Ra Cap Mgmt Lc holds 2.08% or 2.46 million shares in its portfolio. Blackrock holds 4.27 million shares. Voya Mngmt Ltd Liability reported 22,263 shares. 25,673 are owned by Proshare Limited Com.

Since May 29, 2019, it had 0 buys, and 1 sale for $20.00 million activity.

More notable recent Liberty Global Plc (NASDAQ:LBTYK) news were published by: Streetinsider.com which released: “Liberty Global (LBTYA) Announces Preliminary Results of Modified Dutch Auction Tender Offers – StreetInsider.com” on September 10, 2019, also Seekingalpha.com with their article: “Tracking Seth Klarman’s Baupost Group Holdings – Q2 2019 Update – Seeking Alpha” published on August 16, 2019, Finance.Yahoo.com published: “Seth Klarman’s Baupost Boosts Liberty, Reduces eBay – Yahoo Finance” on August 15, 2019. More interesting news about Liberty Global Plc (NASDAQ:LBTYK) were released by: Nasdaq.com and their article: “Vanguard FTSE All-World ex-US ETF Experiences Big Inflow – Nasdaq” published on August 20, 2019 as well as Finance.Yahoo.com‘s news article titled: “Liberty Global PLC (LBTYK) Q2 2019 Earnings Call Transcript – Yahoo Finance” with publication date: August 09, 2019.

Dicerna Pharmaceuticals, Inc. (NASDAQ:DRNA) Institutional Positions Chart

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