Sony’s profits surged by 10%, surpassing expectations due to strong performance in their gaming software and music divisions.
Editor Thenews24.net
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Beyoncé Boosts Sony’s Profits in Q1
Beyoncé took the stage during the Renaissance World Tour, as captured by Kevin Mazur for Wireimage and Getty Images. On Wednesday, Sony announced a 10% increase in operating profit for the first fiscal quarter, surpassing analyst predictions due to robust growth in its gaming, music, and imaging chip sectors. The music division, in particular, saw a significant boost from the release of Beyoncé’s new album, “Cowboy Carter.”
Sony’s Financial Results
Here are Sony’s financial results for the June quarter compared to LSEG consensus estimates:
- Revenue: 3.01 trillion Japanese yen ($20.5 billion), exceeding the expected 2.8 trillion yen, marking a 2% increase from the same period last year.
- Operating profit: 279.11 billion yen ($1.9 billion), higher than the anticipated 275.35 billion yen, reflecting a 10% year-over-year rise.
Sector Performance
In its earnings report, Sony highlighted substantial sales increases in game and network services, music, and imaging and sensing solutions. The gaming division, known for its PlayStation consoles, reported revenues of 864.9 billion yen, a 12% increase from 771.9 billion yen the previous year. The music and imaging sensor divisions also saw revenue increases of 23% and 21%, respectively.
Full-Year Forecast
For the full year 2024, Sony revised its sales forecast upward to 12.6 billion yen, a 2% increase from its previous guidance. The company also raised its operating profit forecast by 3%, expecting to achieve 1.3 trillion yen in consolidated operating profit for the year.
Contributions from Beyoncé’s New Album
Beyoncé’s new album significantly contributed to Sony’s music division’s performance in the June quarter. Sony highlighted “Cowboy Carter,” along with Future & Metro Boomin’s “We Don’t Trust You” and SZA’s “SOS,” as top-selling projects for Sony Music Entertainment. “Cowboy Carter,” released in March, pays tribute to Beyoncé’s hometown of Houston, Texas, and is one of the major releases of 2024, alongside Taylor Swift’s “The Tortured Poets Department.”
PlayStation 5 Sales and Market Trends
In May, Sony reported a disappointing full-year 2023, narrowly missing its PlayStation 5 sales target with 20.8 million units sold, just shy of the 21 million units expected. On Wednesday, Sony announced it sold 2.4 million PlayStation 5 units in the June quarter, down from 3.3 million units in the same period last year. However, the company saw a boost in software sales, particularly from first-party game titles and its PlayStation Plus subscription service, which offers online multiplayer access and free monthly titles.
Shifts in the Gaming Industry
The data indicates a long-term shift in the console industry, with gamers increasingly favoring digital downloads and subscription services, including cloud-based game streaming that eliminates the need for expensive hardware.
Market Reaction
Sony’s shares remained flat in Tokyo on Wednesday. Japanese stocks have experienced volatility this week, with the Nikkei index recording its worst day since the 1987 Black Monday market crash on Monday.