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Japanese technology company SoftBank Group Corp. has reported losses for the fiscal first quarter as its technology investments were affected by a market downturn. However, the reported losses of 477.6 billion yen (.4 billion) for the April-June period were smaller than the losses of 3.16 trillion yen ( billion) the company incurred a year ago.

The losses were primarily from SoftBank’s Vision Funds and other investments, including those in Japanese telecommunications. Despite the losses, Chief Financial Officer Yoshimitsu Goto maintained an optimistic outlook, saying that the environment for technology issues was improving. Goto emphasized the need for careful monitoring of investment conditions and making adjustments accordingly.

While SoftBank Vision Fund 1 has gained .4 billion since its inception, Vision Fund 2 is still operating at a loss of .6 billion. The latest period saw an increase in the value of holdings in Coupang, a South Korean e-commerce company, and Grab, a Singaporean technology outfit. However, declines in its portfolio of Didi and other Chinese companies offset these gains.

SoftBank Group’s overall performance in its Vision Fund investments has been improving, according to Goto. The company attributed much of the quarterly loss to the declining value of the yen, which negatively impacts Japanese investors. Excluding this factor, investments were essentially breakeven.

Quarterly sales remained relatively stable, seeing a marginal decrease of nearly 1% to 1.56 trillion yen ( billion). SoftBank did not provide full-year forecasts.

SoftBank Group, known for its investments in various companies, has historically faced challenges during technology downturns. It was also affected by the U.S. banking crisis earlier this year and geopolitical uncertainties like the Russian invasion of Ukraine.

However, there are signs of improvement in the technology sector worldwide. This is reflected in the recent rise in share prices of major companies such as Amazon, Facebook, and Alphabet.

SoftBank has divested significant stakes in companies like Uber and Alibaba, aiming to weather difficult times. The company’s founder, Masayoshi Son, has expressed his intention to adopt a more bullish approach and lead investments in artificial intelligence. SoftBank’s investments include Telexistence, a company that develops robots for stocking shelves in Japanese convenience stores.

SoftBank also plans to carry out an initial public offering of Arm, a British semiconductor and software design company, in the United States, which could positively impact its financial performance.

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