Sony raises profit forecast after earnings beat, boosted by Music and Imaging divisions

Sony Group On Tuesday, it reported a beat-expectation jump in second-quarter operating profit and announced share buybacks worth up to 100 billion Japanese yen ($648 million).

Here are Sony’s second-quarter results compared to LSEG SmartEstimates, weighted by more consistently accurate analyst estimates:

• Revenue: 3.108 trillion Japanese yen, expected 2.985 trillion yen
• Operating profit: 429 billion yen compared to expectations of 398.44 billion yen

Sony’s operating profit increased by 10% compared to the same period last year, while revenues increased by 5%

The Japanese tech giant said it expects fiscal year operating profit to rise by 100 billion yen, or 8% above its previous forecast, driven by gains from its Imaging and Sensing Solutions and Music segments. The company also raised its annual revenue outlook by 300 billion yen, or 3%.

This comes as Sony sees the strength of its gaming and networking services division, home to the popular PlayStation home console brand. The division, which represents Sony’s largest revenue generator, reported sales of 1.113 trillion yen, up 3.9% year on year.

Gaming and network services have performed well in recent quarters, thanks to a shift towards digital game purchases and the PlayStation Plus subscription service. Growth in hardware shipments has decreased relatively.

The company also saw significant growth in its second largest segment, the music business, with sales increasing by over 20% compared to the same period last year. Revenue from the Imaging and Sensing Solutions business also increased by 14.75%.

Despite the strong performance, commercial sales decreased by approximately 2.75% year-on-year. This is despite Sony Pictures Animation being behind this year’s smash hit production KPop Demon Hunters, which premiered on June 20.

The film, produced by Sony, It has reportedly become the most popular Netflix movie ever and continues to break streaming records even with its original soundtrack.

Although the exact details of the agreement are not known, reported It was announced that Sony initially made a profit of $25 million from the production of the film for Netflix.

Netflix saw KPop Demon Hunters gain a significant audience and even contributed to its 17% revenue growth in the September quarter.

But in a bright spot for Sony, it has already been confirmed that the film will have a sequel with Netflix. reportedly The Japanese company will be provided with a cash bonus of $15 million for the performance of the first film.