Sony reported a 34% increase in profit in the last quarter, driven by strong sales of video games, music, and movies. The company’s quarterly profit reached 189 billion yen ($1.2 billion), up from 141 billion yen the previous year, with sales totaling 3.48 trillion yen ($22 billion). However, Sony’s profit for the fiscal year through March declined by 3% to 970 billion yen ($6.2 billion), despite a 19% increase in annual sales to 13 trillion yen ($83 billion). The company’s financial services segment negatively impacted its operating profit, prompting a shift towards focusing on its more profitable entertainment operations.
Sony’s chief financial officer and president, Hiroki Totoki, emphasized the company’s strategy to enhance profitability and resilience in an evolving business environment. While declining to comment on reports of interest in purchasing Paramount Global, Totoki confirmed a general strategy to build synergies leveraging Sony’s intellectual property in games, music, and movies. Media reports indicated that Sony Pictures and private equity firm Apollo Global Management were considering acquiring Paramount Global for $26 billion, with Sony as the majority shareholder and Apollo holding a minority stake.
In the past fiscal year, Sony’s movies, music, video games, and imaging solutions units performed well. Successes included growth in paid subscriptions at U.S. video streaming service Crunchyroll, along with successful music releases such as SZA’s “SOS” and Travis Scott’s “Utopia.” In movies, box office hits like “Spider-Man: Across the Spider-Verse” and “Napoleon” contributed to revenue. Although Hollywood strikes impacted earnings, upcoming releases like “Bad Boys: Ride or Die” are expected to drive a turnaround. Additionally, Sony announced job cuts in its PlayStation division, citing industry changes, but highlighted strong online gaming and console sales.
Sony’s PlayStation 5 sales reached 20.8 million units for the fiscal year through March, with expectations to sell 18 million more this year. Popular game software like “Helldivers 2” for the PS5 contributed to its success. The company, like other Japanese exporters, benefited from the weakening yen which boosted overseas earnings when converted into yen. Sony anticipates a profit decline to 925 billion yen ($5.9 billion) for the current fiscal year, with sales expected to decrease to 12.3 trillion yen ($79 billion). Despite these projections, Sony remains optimistic about its position in the market and ongoing success in the entertainment industry.
