SoftBank Group Expected to Post First-Quarter Net Loss — Earnings Preview

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By Kosaku Narioka

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SoftBank Group Corp. is scheduled to report its first-quarter results on Monday. Here is what you need to know:

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NET LOSS FORECAST: SoftBank Group is expected to post a net loss of 91.67 billion yen ($689.6 million) for the quarter ended June 30, according to a poll of analysts by Quick. That compares with a net profit of Y761.51 billion a year earlier.

REVENUE FORECAST: Revenue is estimated to have risen 3.5% from a year earlier to Y1.531 trillion, according to the Quick poll.

WHAT TO WATCH:

–VISION FUNDS: Its Vision Funds business posted a loss of Y2.639 trillion for the fiscal year ended March due partly to valuation losses in investments in Coupang Inc. and Didi Global Inc. The company is expected to report billions of dollars of additional losses in its two giant startup funds in its first quarter, The Wall Street Journal reported earlier this week. Investors are focusing on the size of potential losses from its Vision Funds business.

–ARM: SoftBank Group chief executive Masayoshi Son said in May that the company is getting ready for the initial public offering of chip design unit Arm. The company paused talks for an IPO in London due to the political turmoil there, potentially paving the way for the company to pursue a US listing, the Financial Times reported in July. Investors are closely watching any updates on the planned listing of Arm.

–FORTRESS: Abu Dhabi’s Mubadala Investment Co. is in talks to buy asset manager Fortress Investment Group from SoftBank Group, Bloomberg reported in July. SoftBank Group has sold many assets in recent years, partly to fund share buyback. Investors are paying attention to any further potential sales of its prominent businesses, including Fortress.

Write to Kosaku Narioka at [email protected]

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Credit: www.marketwatch.com /

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