Sony Posts Record Profit on Pandemic Demand for Devices, Content

Sony raised its earnings outlook on Wednesday after a document first-quarter working revenue helped by pandemic stay-at-home demand for PlayStation 5 consoles, TVs, music, and flicks.

Operating revenue for the quarter ended June 30 rose to JPY 280.1 billion (roughly Rs. 18,970 crores) from JPY 221.7 billion (roughly Rs. 15,010 crores) a 12 months earlier, topping the JPY 207.96 billion (roughly Rs. 14,080 crores) anticipated by 10 analysts, Refinitiv Eikon information confirmed.

It raised its revenue forecast for the 12 months by way of March 2022 to JPY 980 billion (roughly Rs. 66,360 crores) from JPY 930 billion (roughly Rs. 62,965 crores), bringing it nearer to the JPY 1 billion (roughly Rs. 680 crores) common estimate from 25 analysts.

Sony had anticipated rising pandemic demand for its gadgets and content material to wane as coronavirus lockdowns eased, however with contemporary waves of COVID-19 infections sweeping the world, restriction are nonetheless frequent.

A scarcity of semiconductors, nonetheless, which can be affecting the likes of Apple, means it can’t produce sufficient PlayStation video games consoles to fulfill demand.

Those supply-chain constraints may additionally have an effect on manufacturing of different client digital gadgets, Chief Financial Officer Hiroki Totoki advised a information briefing after Sony’s outcomes.

“We use a lot of semiconductors and it is a source of concern,” Totoki mentioned. “We can’t become complacent,” he added.

Sony in May mentioned it anticipated to promote 14.8 million PS5 items this fiscal 12 months. Launched in core markets in November 2020, the console, which sells for as a lot as $500 (roughly Rs. 37,110 crores), rapidly offered out.

Sony has secured sufficient chips to attain that manufacturing goal, Totoki mentioned.

Sony sees the sport console as a approach to join its conventional client electronics with its rising content material enterprise by encouraging on-line recreation downloads and sign-ups for subscription providers.

As it streamlines its client electronics enterprise, Sony is beefing up its leisure content material and distribution enterprise. In December it agreed to purchase AT&T’s animation enterprise Crunchyroll with 3 million subscribers worldwide.

In June it purchased Housemarque, a Finnish recreation software program maker. 

Sony additionally rising film choices on streaming providers supplied by Walt Disney and Netflix. because the pandemic delays film theatre releases.

Higher manufacturing prices, nonetheless, dented profitability, the corporate mentioned.

In May, the corporate indicated that it will proceed to broaden its content material enterprise by way of acquisition when it mentioned it will spend 2 trillion yen over the following three years on strategic investments, together with a push to broaden subscribers to its gaming and leisure providers.

In its monetary division, Sony posted a JPY 16.8 billion (roughly Rs. 1,140 crores) one-time loss ensuing from an unauthorised fund switch at a Bermuda subsidiary, SA Reinsurance, in May.

The firm mentioned it reported the fee to native authorities and was making an attempt to recuperate the cash.

© Thomson Reuters 2021