Prime Highlights:
- Sony raised its full-year profit forecast after strong second-quarter results.
- The company showed confidence in its future by announcing a 100 billion yen ($648 million) share buyback.
Key Facts:
- Sony’s imaging division profit rose nearly 50% to 138.3 billion yen, becoming its most profitable segment.
- Revenue for the quarter grew 5% year-on-year to 3.108 trillion yen ($20.14 billion), beating market expectations.
Background:
Sony Group raised its full-year profit forecast after strong second-quarter results, helped by growth in its music and imaging divisions. The company also plans to buy back up to 100 billion yen ($648 million) worth of shares, showing its confidence in future growth.
For the three months ending September, Sony recorded an operating profit of 429 billion yen, surpassing market expectations of 398.44 billion yen, according to LSEG SmartEstimates. Revenue rose 5% year-on-year to 3.108 trillion yen ($20.14 billion), exceeding the projected 2.985 trillion yen. Overall operating profit increased 10% compared with the same period last year, helping lift Sony shares more than 6% after the results were released.
The company’s imaging and sensing solutions unit emerged as its top profit generator this quarter, achieving an operating profit of 138.3 billion yen, a surge of nearly 50% from last year. The division makes semiconductor products used in smartphones, cars, and industrial machines, and it continues to grow thanks to strong global demand for imaging technology. Sony’s music division also performed well, with profit rising 27.65% from last year to 115.4 billion yen, supported by higher streaming numbers and popular new releases.
Sony has increased its full-year operating profit forecast by 100 billion yen, or 8%, from its earlier estimate, mainly due to the strong performance of its imaging and music businesses. It also increased its annual revenue outlook by 300 billion yen, or 3%, while narrowing its expected losses from U.S. tariffs to 50 billion yen from 70 billion yen.
Meanwhile, Sony’s game and network services division, home to the PlayStation brand, maintained solid sales but saw a 13.26% dip in profit to 120.4 billion yen. Despite this decline, digital game sales and the PlayStation Plus subscription service remain key revenue drivers.
Though profit from Sony’s picture division fell nearly 25% from last year, its animated hit KPop Demon Hunters became the most-watched film on Netflix. A sequel has already been confirmed, with Netflix awarding Sony a $15 million performance bonus, offering further potential for growth in its entertainment portfolio.
