Sony profits soar on blockbuster sales of movies, games, and music

Sony experienced a 34% surge in profit in the last quarter, driven by robust sales in its video games, music, and movies sectors, the Japanese electronics and entertainment company reported on Tuesday.

Tokyo-based Sony Corp. reported a quarterly profit of 189 billion yen ($1.2 billion), up from 141 billion yen the previous year. The PlayStation maker saw a 14% increase in quarterly sales, reaching 3.48 trillion yen ($22 billion).

For the fiscal year ending in March, Sony recorded a 3% drop in profit to 970 billion yen ($6.2 billion) from over 1 trillion yen the previous year. However, annual sales rose by 19% to 13 trillion yen ($83 billion).

The company’s operating profit was impacted by its financial services segment, which is set to be partially spun off next year. Chief Financial Officer and President Hiroki Totoki stated that Sony is refocusing its strategy on its more profitable entertainment sectors.

“We aim to enhance our profitability and strengthen our resilience to a constantly changing business environment,” Totoki said during an online presentation.

Totoki did not address media reports regarding Sony’s interest in acquiring Paramount Global but confirmed that the company’s strategy involves building “synergies” in its gaming, music, and movie intellectual properties.

Reports from the Wall Street Journal and the Associated Press indicated that Sony Pictures, along with Apollo Global Management, is interested in purchasing Paramount Global for $26 billion. Sony would be the majority shareholder, with Apollo holding a minority stake, according to a source familiar with the deal who requested anonymity.

Sony’s divisions in movies, music, video games, and imaging solutions performed well over the past fiscal year. Growth in paid subscriptions for Crunchyroll, a U.S. video streaming service, contributed positively to Sony’s financial results.

In music, top releases included SZA’s “SOS” and Travis Scott’s “Utopia,” with Beyonce’s “Cowboy Carter” reaching No. 1 on Billboard and other charts.

In film, notable successes were “Spider-Man: Across the Spider-Verse,” which earned $691 million worldwide, and “Napoleon,” which grossed $221 million.

Last year’s Hollywood strikes negatively impacted film earnings, but upcoming releases like “Bad Boys: Ride or Die,” set for a June release, are expected to drive a recovery.

In February, Sony announced it would cut around 900 jobs, about 8% of its global workforce, in the PlayStation division due to industry changes requiring restructuring.

Despite these cuts, Sony emphasized the strength of its online gaming and console sales. PlayStation 5 sales reached 20.8 million units for the fiscal year ending in March, with an expectation to sell 18 million PS5 consoles this year. Recent hit game software for the PS5 included “Helldivers 2.”

Sony, like other Japanese companies, has benefited from a weakening yen, which increases the value of overseas earnings when converted to yen. The U.S. dollar has been trading at around 156 yen recently.

Looking ahead, Sony projects a profit drop to 925 billion yen ($5.9 billion) for this fiscal year, with sales expected to decrease to 12.3 trillion yen ($79 billion).