SoftBank Group is scheduled to release its second-quarter results on Tuesday. Here are some key points to watch:
1. Net Profit: Net profit for the three months ending in September is expected to plummet 98% year-on-year to ¥53.5 billion (approximately $337.6 million). In the same period last year, net profit was ¥2.502 trillion, primarily driven by billions of dollars in gains from its investment in OpenAI.
2. Vision Fund: SoftBank's Vision Fund business saw a sharp drop in first-quarter profit to ¥5.43 billion, compared to ¥451.39 billion in the same period last year. This was mainly dragged down by valuation losses at companies such as Symbotic, an AI-driven robotic warehouse automation company. Attention should be paid to whether there are signs of recovery in its technology fund business.
3. OpenAI Partnership Progress: As per the previously announced investment plan, the company has invested an additional $10 billion in OpenAI, bringing its total investment in the company to $64.6 billion, increasing its stake to approximately 13%. Any new developments in its OpenAI investment should be monitored.
4. Potential Acquisition Deals: SoftBank's $5.4 billion acquisition of ABB's robotics business has been stalled. Meanwhile, SoftBank is reportedly in preliminary talks with private equity investors to acquire Allied Universal, one of the world's largest private security companies. It remains to be seen whether management will make further statements regarding these potential deals.
