Sony Group has announced that its net profit for the first quarter of the fiscal year has dropped by 17% compared to the previous year. The decline in earnings is primarily attributed to weaker performance in the movie and financial sectors.
Financials and Analysis
For the quarter ended June 30, Sony Group’s net profit amounted to ¥217.545 billion ($1.52 billion), surpassing analysts’ estimates of ¥179.735 billion. Despite the decrease in net profit, revenue saw a positive growth of 33% from the previous year, reaching ¥2.964 trillion.
The movie business division recorded an operating profit of ¥15.97 billion, down from ¥50.655 billion in the same period last year. The decline can be attributed to lower revenue and increased advertising expenses. Similarly, the financial business segment experienced a decrease in operating profit, falling to ¥54.51 billion from a high base of ¥139.21 billion, which was boosted by one-off gains.
Despite the less-than-ideal Q1 results, Sony Group has revised its revenue and net-profit forecasts for the fiscal year ending in March. The company now expects a revenue increase of 11%, projecting ¥12.200 trillion compared to the previous forecast of ¥11.500 trillion. However, the net profit forecast has been adjusted downwards to Y860.00 billion, a decline of 14.5% from the previous estimate of Y840.00 billion.
Furthermore, Sony Group has raised its projection for the music business operating profit for the fiscal year to Y280.0 billion from the previously forecasted Y265.0 billion.