SoftBank posts surprise $5.9 billion loss in Q3

TOKYO AFP-Jiji -- SoftBank Group reported a surprise $5.9 billion net loss in the third quarter, as a slump in the tech sector continued to hit the investment behemoth s bottom line.

The firm reported a loss of 29 billion $219 million in the same three-month period last year, compared to the loss last year's net profit of 29 billion $219 million.

SoftBank said that the two Vision Fund investment vehicles lost 660 billion dollars in October-December, which is a result of declines in the share prices of a wide range of portfolio companies.

The firm has made huge bets to find and grow hot new tech ventures around the world, but that has left its earnings vulnerable to market forces, and its Vision Funds have reported losses for four straight quarters.

Interest rate hikes by the U.S. Federal Reserve and other central banks to tackle inflation have weighed on global tech shares and put pressure on SoftBank.

The environment has been very tough over the past year, said Yoshimitsu Goto, chief financial officer.

Goto said we can't be optimistic yet.