Advertisement

SoftBank set to return to profit after record drop

Massive Japanese multinational SoftBank Group will likely be back in the black on Tuesday (August 4) after it reported a record loss three months ago.

That's according to analysts who say the good news will be thanks to a rise in its holdings like Alibaba and Uber.

SoftBank Vision Fund boasts $100 billion dollars in assets, investing in emerging tech.

Under Chief Executive Masayoshi Son - its made big bets on darling tech start ups like Uber.

However, no thanks to the implosion of office space firm WeWork, and other startups gone awry. It posted a big shortfall for the year to March.

Now, analysts say Softbank will bounce back from that likely with a record operating profit of just over $1.6 billion for April to June.

It's also seen some good news in its porfolio like DoorDash, a food delivery service that's filed for a listing.

But it all still represents a 75% drop from the last time it made a quarterly profit over the same span in 2019.

CEO Son has also pivoted as his plans have failed selling off satellite company OneWeb and selling off stakes in Alibaba and U.S. carrier T-Mobile.

Softbank has also struggled to attract capital for a second mega-fund given poor performance of the first and so it's turned to investing its own money.

Son was also quoted saying in June that the value of SoftBank's assets has returned to levels before the health crisis.