Sony Group Reports 17% Drop in Net Profit for Q1

Sony Group announced its first-quarter results on Wednesday, revealing a 17% decline in net profit compared to the previous year. The company reported a net profit of 217.545 billion yen ($1.52 billion) for the quarter ended June 30, surpassing analysts' estimates of Y179.735 billion.

Revenue Soars by 33%

Despite the decline in net profit, Sony Group experienced a significant increase in revenue for the first quarter. The company's revenue jumped by 33% from the previous year to Y2.964 trillion.

Music Business Flourishes with 20% Operating Profit Growth

Sony's music business saw a remarkable 20% increase in operating profit compared to the previous year, reaching Y73.38 billion. This growth can be attributed, in part, to the higher revenue generated from streaming services. As a result, Sony has raised its forecast for segment operating profit to Y280.0 billion for the fiscal year ending March 2024, up from the previously projected Y265.0 billion.

Mobile Sensors Face Challenges, Operating Profit Forecast Revised

However, Sony faced challenges in its imaging and sensing business. The company had to revise its fiscal-year operating-profit forecast for this segment from Y200.0 billion to Y180.0 billion due to weaker sales of image sensors used in mobile phones and other devices. In the first quarter, operating profit for this segment dropped by 41% to Y12.73 billion.

Game Business Sees Decline in Operating Profit

Sony's game business also experienced a decline in operating profit for the first quarter, dropping by 6.8% compared to the previous year. Despite increased sales of hardware, the company incurred higher acquisition-related costs, resulting in an operating profit of Y49.16 billion. However, Sony's sales of PlayStation 5 units showed promising growth, with 3.3 million units sold in the first quarter, up from 2.4 million units the previous year.