Sony Group Corp., Japan’s electronics and entertainment group, revealed JPY2.31 Trillion of revenue during the three months from April to June. It is the first quarter for its financial year. In the quarter, group profits were JPY218billion. These modest increases were in local currency terms of 2% & 3%, respectively.
The currency fluctuations, notably the strength and weakness of US dollars, had a major impact on the results. Additionally, the U.S. Federal Reserve used interest rates to try to slow down inflation. A contrasting macro-economic strategy was being implemented in Japan. Sony stated that its revenue figures would have decreased 7$ if it had been constant currency.
The ‘Pictures Division’The Pictures Division, which includes feature film, television networks, and TV production operations, raked in $2.64 billion in revenue and $394 millions of operating profits. These figures are compared to the April-June 2021 period, when COVID restrictions were still largely hindering the theatrical industry. The Pictures Division had revenues of $1.87 Billion and operating profits in excess of $232 M.
Like ‘Pictures’, Sony’s music division managed revenue and operating profit improvements. The equivalent quarter last year saw sales rise from JPY255billion to JPY308billion. Net profits increased from JPY55.4 million to JPY61 billion.
The games division had sales that were only marginally lower than JPY616 trillion, despite JPY58billion of currency benefits. The unit’s profitability fell sharply from JPY83billion in the same quarter last year to JPY52.8billion.
In July, Sony acquired Bungie Inc., an American video game developer. It confirmed that the purchase cost $3.7B including working capital adjustments and employee incentive. Bungie’s anticipated impact on group finances is included as part of the updated guidance that accompanied Sony Group’s latest results statement.
Sony claimed that the 41% sales growth (67% in Japanese Currency) was due to higher series deliveries, higher licensing revenues and higher sales of anime streaming services. However, the company noted that there were fewer theatrical releases. There were only two releases. “Morbius”(global gross domestic box office $167 millions) “Father Stu”(Global box office of $22,000,000) Compared to three movies released between April and June 2021.
The results were made public Friday, shortly after the close of trading on Tokyo Stock Exchange and just before the daily opening at the New York Stock Exchange. Sony shares closed in Tokyo at JPY116,00090, down approximately 22% since 2022. New York closed Thursday with its ADR shares closing at $87.56 per share.