The Covid-19 badly hits the entire world, and its impact is still largely felt almost worldwide. It created a long-lasting impact in several sectors, mostly the economy as a whole. Almost all countries are facing a huge deficit in its overall GDP. Banking and capital markets have too not been exempted. Many companies have undergone a huge amount of losses. As a result, many people lost their jobs because the companies decided to cut short the existing working force to deal with the loss incurred. Amidst all these, a Japan-based technology company has a different story to be told. This article mainly intends to through a light on their loss recovery journey.
Loss recovery journey of Softbank
The company claims that it had been successful in recovering its loss as their investments grew. In the recent months of July to September, the company testified a 627 billion yen, which amounts to about $6.1 billion profit in that particular quarter, which is further compared, makes up for a loss of about 700 billion yen, in the same quarter of the previous year of 2019. There has also been a considerable hike in the company’s overall sales, which may be accounted for a 5% increase. The company has its stakes invested in:
● Sprint: US carrier
● British IoT company Arm
● Alibaba: a Chinese company is dealing in e-commerce.
Such investments were made to increase cash flow for their business. Sprint, though, is no longer a member adding to the contributions of the company. Masayoshi Son, the CEO, compared the corona pandemic’s adversities with that of the great depression. The pandemic has impacted in a way or the other every sector. Still, it also stood advantageous to technology as everything went online, thus requiring more technological support.
Measures were taken by the CEO to deal with the pandemic crisis
Masayoshi Son brought forth his intention to meet its goals by bringing in “the information revolution.” He also mentioned that the company relies on its net asset value and not majorly on the profit or loss. Son further mentioned that he is mostly going to focus investing on Artificial Intelligence, which according to him, will attest to be dynamic for all the businesses he’s backing on, like robots undertaking deliveries and automatic driving, etc. Softbank has to credit certain fresh startups, which yielded positive results for the company. One such example can be taken from WeWork, which is an office sharing business.
This brought in great profits for the company. SoftBank has reserves in Yahoo! the Pepper companion robot and Japan, and in its SoftBank mobile carrier in Japan, the primary purpose is to propose the iPhone.
To conclude, SoftBank stands as an inspiration for all other companies that lost hope in market regulation due to this pandemic. But, through this case study, people get to have an idea to deal with its investments. Also, the CEO had a great role to play in guiding the loss recovery journey of SoftBank.