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

By Kosaku Narioka

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

NET LOSS FORECAST: SoftBank Group is expected to post a net loss of 69.95 billion yen ($493.5 million) for the quarter ended June 30, according to a poll of analysts by Visible Alpha. That would compare with the Y3.163 trillion net loss in the year-earlier period.

REVENUE FORECAST: First-quarter revenue is estimated to have risen 4.8% to Y1.648 trillion, according to the Visible Alpha poll.

WHAT TO WATCH:

–VISION FUNDS: Its Vision Funds business booked a loss of Y4.308 trillion in the year ended March, as technology stocks were hit by concerns about high inflation and rate increases by global central banks. That compared with a Y2.553 trillion loss the previous fiscal year. Investors will focus on any signs of a recovery in its tech funds business.

–ARM: SoftBank plans to list British chip designer Arm in New York. Investors will be looking for details on the planned public offering.

–AI: Chief Executive Masayoshi Son told shareholders at the annual meeting in June that he would devote himself to artificial intelligence and new inventions. The company had been cautious about new investments due to the global tech selloff and investment losses. Investors will pay attention to new lines of investments SoftBank Group may make.

Write to Kosaku Narioka at [email protected]

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