Sony Profits Up 346% on Strong PlayStation Demand

Sony Corp (6758.JP) smashed broker estimates with its second quarter financial performance, posting a 346% year-on-year rise in operating profits to JPY204.2 billion compared to JPY45.7 billion a year ago.


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That was 9.6% higher than the JPY186 billion forecast by analysts polled by Reuters. Net income also easily topped expectations, increasing by JPY 126.0 billion year-on-year to JPY 130.9 billion.

The Japanese electronic giant growth was driven by a strong performance from its Game & Network Services division which makes the PlayStation console. Sales of this division increased 35.4% year-on-year to JPY 433.2 billion yen, while operating income increased 188.3% to JPY54.8 billion due to an increase in PlayStation4 software sales, the impact of foreign exchange rates, as well as an increase in PS4 hardware sales, the company said.

Most other divisions performed well. Sales at the company's imaging product and sensors division, which makes components for smartphones, increased 15.8% year-on-year to JPY 156.7 billion. Sales at its Home Entertainment & Sound division increased 28.1% year-on-year to JPY 300.9 billion yen thanks to an improvement in the product mix of televisions reflecting a shift to high value-added models, as well as the impact of foreign exchange rates. Meanwhile, revenue at its Semiconductor business grew 17.9% year-on-year to JPY228.4 billion due to a significant increase in unit sales of image sensors for mobile products, as well as the absence of the impact of a decrease in image sensor production due to the 2016 Kumamoto Earthquakes in the same quarter of the previous fiscal year. Its Motion Pictures increased due to the strong worldwide theatrical performance of Spider-Man: Homecoming, while its Music division was boosted by the continued strong performance of Fate/Grand Order, a game application for mobile devices. Recorded Music sales increased significantly primarily due to a continued increase in digital streaming revenues.

The company, which also raised its second quarter dividend to JPY 12.50 a share, now forecasts operating income for the year ending March 31 to be JPY 630 billion.

Sony closed 2.39% higher at JPY4,413 a share. Year-to-date shares in Sony are up 34.7%.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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