Sony Group has reported 16% overall revenue growth despite PS5 sales struggling to hit set targets.
The business who saw a big lift in music streaming, up 40% for the quarter ending in September, with management reporting a 24% rise in profits to $1.79 billion which is a far cry from when the business was haemorrhaging billions.
The Company is tipping $5.6 billion in Net profits for the year. TV and audio sales were also up.
Sony revenues grew 16% primarily from key segments including movies, music and imaging buoyed by the weaker Japanese yen, which boosts overseas earnings.
“In addition to foreign exchange gains, music streaming growth is the driver of the upward revision,” Hiroki Totoki, Sony’s executive deputy president and chief financial officer, told an online briefing last night.
He also revealed that music streaming earns more stable profits than other entertainment such as games and movies and has been less exposed to the COVID pandemic or economic downturn.
Totoki said the downward revision of the profit forecast for the game business for the second consecutive quarter was “the biggest regret”.
While exchange rates helped to boost revenues sales, the company sold fewer non-first-party titles, including add-on content. Profits in the segment were hit by high software development costs.
Totoki said Sony would try to accelerate sales of leading software titles and expand the supply of the PlayStation 5, its flagship games console.
Executives said that they do not expect any dampening of demand after it raised prices for the console in several Countries.
Operating income forecasts for Sony’s semiconductor business were also raised. “Although we have not seen any improvement in the slowdown in demand for the Chinese smartphone market, sales for high-end smartphones were the highest ever for a quarter,” Totoki said.
Sony’s film segment recorded a significant increase in revenues, but operating income declined 13% due to advertising expenses.
