By Kosaku Narioka

SoftBank Group is scheduled to report its third-quarter results on Wednesday. Here's what you need to know:

NET PROFIT FORECAST: SoftBank Group is expected to post a 66% drop in net profit to 322.2 billion yen, equivalent to $2.13 billion, for the three months ended December, according to a poll of analysts by Visible Alpha. That would compare with Y950.00 billion in net profit in the year-earlier period.

REVENUE FORECAST: Third-quarter revenue is estimated to have risen 3.2% from a year earlier to Y1.832 trillion, according to the Visible Alpha poll.

The stock has risen 3.4% so far this year to close at Y9,496 on Monday, following a 46% gain in 2024. The stock has been driven higher due to expectations for growing artificial intelligence-related demand at its subsidiaries and investees.

WHAT TO WATCH:

--Its Vision Funds business swung to a profit of Y373.14 billion in its second quarter from a loss of Y258.86 billion in the year-ago period. Investors will be closely watching any further improvement in its tech funds business.

--Investors will also be focusing on any details of SoftBank Group's initiatives with OpenAI. In January, the company and the ChatGPT maker announced a plan to invest up to half a trillion dollars in AI infrastructure in the U.S., together with other partners. The two companies also plan to team up to offer AI services, initially targeting Japanese businesses.

--SoftBank Group's stakes in Arm Holdings, Deutsche Telekom and T-Mobile US are among the largest chunks in its investment portfolio. Investors will be paying attention to any steps the Japanese company might take with these large holdings to fund its growth initiatives.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

February 10, 2025 02:17 ET (07:17 GMT)

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