SoftBank Q3 seen under pressure from tech weakness, Arm IPO in sight |
TOKYO, Feb 3 (Reuters) – SoftBank Group Corp’s ( 9984.T ) quarterly profit on Tuesday is set to show continued pressure from tech valuations that have yet to recover after a global sell-off. the highly anticipated Arm list.
The planned listing of British chip designer Arm, one of the crown jewels of Japanese tech giant Masayoshi Son’s sprawling conglomerate, is critical to improving SoftBank’s financial performance and boosting shareholder returns.
SoftBank said market conditions made it unlikely that an initial public offering (IPO) would take place during the current business year ending in March. However, it aims to take the company public by the end of calendar 2023.
“The important thing is to move forward with Arm’s IPO, implement exit plans for other investments, and then through these steps improve the financial position and deliver shareholder returns,” said SMBC Nikko Securities analyst Satoru Kikuchi.
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According to an average of analysts compiled by Refinitiv, SoftBank’s earnings per share were 103.7 in the most recent quarter. billion yen (806.13 million dollars) is expected to generate net profit. This is 29 a year ago billion compared to yen profit.
SoftBank reported a profit of 3 trillion yen in the July-September period, although those results were boosted by the sale of part of its stake in Chinese tech giant Alibaba Group Holding ( 9988.HK ) and followed two consecutive quarters of losses.
In 2016, SoftBank acquired Arm, which is the backbone of the global smartphone industry and is used in supercomputers. 32 billion bought for dollars.
Reuters news 60 billion after the sale to Nvidia Corp ( NVDA.O ) failed dollars puts forward plans to list Arm, which can be valued at read more
One notable change in SoftBank’s quarterly announcement this time around is the absence of a colorful presentation from founder and chief executive Masayoshi Son, a regular feature of SoftBank’s earnings announcements.
Last November, Arm said it would not be speaking at such briefings in the near future as it focused on accelerating its growth.
Investors will also be watching to see if SoftBank announces a new share buyback scheme along with its third-quarter results.
On the day it announced first-quarter earnings in August, SoftBank said it planned to buy back 400 billion yen worth of its own shares, but did not disclose a new buyback plan during its second-quarter earnings in November. it dropped its shares by 13% the next trading day.
($1 = 128.5500 yen)
($1 = 128.6400 yen)
Reporting by Kiyoshi Takenaka; Edited by David Dolan and Shri Navaratnam
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2023-02-03 12:38:49
Source – reuters
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