Sony has increased its projected net profit for the year, following a strong first quarter performance, with expectations of robust sales in its video game, music, and image sensor divisions.
The depreciation of the yen against the dollar in recent months has led to higher earnings for the Japanese electronics and entertainment conglomerate.
In the period from April to June, the company recorded a six percent rise in net profit compared to the previous year, totaling 231.6 billion yen ($1.6 billion), surpassing analyst predictions.
Sony now anticipates a net profit of 980 billion yen for 2024-25, also a six-percent increase year-on-year.
This is an upgrade from the previous forecast of 925 billion yen, which would have been lower than the result for 2023-24.
Sony has been successful in the music streaming industry, leveraging its extensive music catalog and roster of top artists like Beyonce and Lil Nas X.
Analyst Yasuo Nakane from Mizuho Securities suggested prior to the earnings report that Sony could achieve a record profit this year from its image sensors, notably used in iPhones.
Additionally, Nakane mentioned the potential for Sony to achieve record profits in the gaming sector in the following year under new leadership.
“Our expectations for the near future include improvements in PlayStation 5 supply chain management under the leadership of platform business group CEO Hideaki Nishino,” Nakane stated, emphasizing the possibilities for maximizing profits through strategic hardware, software, and network operations.
Sony reportedly decided against pursuing a rumored bid for US film and television giant Paramount Global, as the company has entered into a merger agreement with production company Skydance, according to Japan’s Nikkei business daily.
nf-mac-kaf/mtp
