SoftBank Group Corp’s quarterly earnings on Tuesday are set to show persistent pressure from tech valuations that have yet to recover from a global sell-off, adding to the uncertain outlook for the timing of the highly anticipated Arm listing.
The Japanese tech giant’s planned listing of British chip designer Arm, one of the crown jewels of Masayoshi Son’s sprawling conglomerate, is seen as crucial to improving SoftBank’s financial performance and boosting shareholder returns.
SoftBank has said the initial public offering (IPO) is unlikely to take place during the current business year that ends in March due to market conditions. But it aims to take the company public by the end of calendar 2023.
“What’s important is pressing ahead with Arm’s IPO, carrying out exit plans for other investments, and then, through those steps, improving financial standing and delivering shareholder returns,” SMBC Nikko Securities analyst Satoru Kikuchi said.
SoftBank is expected to post a net profit of 103.7 billion yen ($806.13 million) for the latest quarter, according to analysts’ average estimate compiled by Refinitiv. That compares with a 29 billion yen profit a year earlier.
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