Monday, 15 August, 2022
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Sony lifts forecast

Sony lifts forecast

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TOKYO: Japan’s Sony raised its full-year profit forecast by 15 per cent on Wednesday after posting estimate-smashing quarterly earnings, propelled by the success of Spider-Man: No Way Home which has become the sixth-highest grossing movie.

Operating profit at its pictures business jumped by more than seven-fold to 149.4 billion yen (US$1.30 billion) in its fiscal third quarter ended December as the unit’s revenue more than doubled, report agencies.

It now expects the business to post a profit of 205 billion yen in the current fiscal year as the super-hero movie, released in December, grossed more than US$1.7 billion worldwide despite the spread of the Omicron COVID-19 variant.

The segment was also boosted by receipts from the Venom: Let There Be Carnage movie and licensing of the Seinfeld sitcom along with the sale of mobile games business GSN Games.

Overall quarterly operating profit at Sony - a conglomerate spanning areas such as entertainment, sensors and financial services - was 465.2 billion yen, compared with an estimated average profit of 351.6 billion yen from nine analysts surveyed by Refinitiv.

Sony, which switched to IFRS accounting standards from US GAAP in the current financial year, increased its full-year profit forecast to 1.2 trillion yen from 1.04 trillion yen. That prediction is higher than an average 1.09 trillion yen profit forecast from 24 analysts, Refinitiv data showed.

The company’s main gaming segment, focused on PlayStation, also posted a rise in profit, with sales of 3.9 million PS5 units in the third quarter, but hardware supply was hampered by component shortages.

Sony cut its full-year PS5 sales forecast to 11.5 million units from 14.8 million units previously in response.