Sony Raises Profit Forecast Amid Strong Music and Imaging Sales
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Sony Group Corporation reported a stronger-than-expected rise in second-quarter operating profit, prompting the company to raise its full-year profit forecast. According to CNBC, the company posted a revenue of 3.108 trillion Japanese yen, or approximately 20.14 billion dollars, surpassing analyst expectations of 2.985 trillion yen.
Operating profit reached 429 billion yen, exceeding the forecast of 398.44 billion yen, marking a 10% increase year-over-year, while revenues rose 5%. Following this earnings announcement, Sony shares experienced a significant increase, jumping more than 6%.
The company announced a share buyback program of up to 100 billion yen, which is about 648 million dollars. Sony's optimistic outlook is bolstered by anticipated growth in its imaging and sensing solutions segment, as well as its music business.
The company raised its operating profit forecast by 100 billion yen, which represents an 8% increase from previous estimates. Additionally, annual revenue projections were lifted by 300 billion yen, or 3%.
Sony also revised its estimated losses from U.S. tariffs downward, now anticipating losses of 50 billion yen, a decrease from the previous estimate of 70 billion yen. This adjustment follows a trade deal with the United States that reduced duties on Japanese exports from 25% to 15%.
In terms of performance by segments, Sony's music business saw a profit increase of 27.65% year-over-year, totaling 115.4 billion yen. Meanwhile, its imaging segment achieved an impressive nearly 50% profit growth, reaching 138.3 billion yen, making it the most profitable segment for the quarter.
Sony's imaging and sensing solutions are essential for a range of applications, including smartphones and automotive systems. However, the game and network services division, which includes the popular PlayStation console, reported a decline in profits of 13.26%, totaling 120.4 billion yen, despite benefiting from a shift towards digital game purchases and subscription services.
Overall, the report underscores the resilience of Sony's music and imaging divisions, signaling a strong recovery in consumer demand and promising potential growth for investors.