Sony Group has announced its second-quarter results, revealing a 29% decrease in net profit compared to the previous year. The net profit for the three months ending on September 30 stood at 200.105 billion yen ($1.33 billion), falling short of analysts’ estimates.
Revenue Growth Falls Below Expectations
Second-quarter revenue fared slightly better, experiencing a 7.7% increase from the previous year, amounting to Y2.829 trillion. However, this figure still fell below the estimated Y2.910 trillion.
Sony has revised its revenue and net profit forecasts for the fiscal year ending in March 2024. The upward adjustment is partly attributed to stronger earnings from the music business. While the company projects a 12.5% decrease in net profit to Y880.0 billion, it now anticipates a 13% increase in revenue to Y12.400 trillion.
Music Segment Boost
The second-quarter operating profit from Sony’s music business rose by 2.9% compared to the previous year, amounting to Y81.00 billion. The increase is partially attributed to higher revenue from music streaming services. Consequently, Sony has raised its fiscal-year operating-profit forecast for the music segment to Y295.0 billion.
Impact on Movie Business
In contrast, Sony slashed its fiscal-year operating-profit projection for its movie business to Y115.0 billion due to the negative consequences of the Hollywood actors’ strike. Despite this setback, the segment’s second-quarter operating profit still saw a 6.6% rise, reaching Y29.44 billion.