Sony Corp yesterday revised upward its full-year profit and sales forecast, reporting that first-quarter profits almost tripled from a year earlier as it extends a roaring recovery under its new chief executive officer.
The company raised its annual net income attributable to stockholders guidance to 500 billion yen from the prior range of 480 billion yen, due to the expected increase in income before income taxes, partially offset by an expected increase in tax expenses. Sony's remaining shares in Spotify are valued at ¥95.3 billion (~$852.06 million). "How much the new games added to profit growth this quarter is important to gauge the rest of the year".
With the previous year's one-time gain of 36.8 billion yen excluded, Sony logged even sharper first-quarter growth of 61 per cent.
Under that strategy, the gaming business saw profit increase to JPY 83.5 billion in the three months ended June from JPY 17.7 billion a year earlier, as high-margin online software and new first-party titles such as "God of War" and "Detroit: Become Human" compensated for slowing sales of PlayStation 4 consoles.
Annual sales are now projected to rise slightly, with operating profit unchanged.
During Q1, Sony shipped 3.2 million PS4 consoles to retailers bringing the total up to 82.2 million units, which is actually down by around 100,000 units year-on-year. The company also had a few surprises to share in the quarter at the Electronic Entertainment Expo (E3).
Additionally, as music streaming continued to grow with Spotify announcing that its monthly active user base had expanded to 180 million, which topped all market estimates. That boosted royalties received by Sony, sending operating profit up 28% from a year ago to ¥32.1-billion.
It said sales were up 9.1 percent to ￥168.16 billion, and it was expecting strong demand for the Switch console to continue into the second half of the year. The unit also got a lift from the ongoing popularity of mobile game Fate/Grand Order. The dollar is now expected to average 110 yen for the full year, compared to its earlier forecast of 105 yen.
Japanese consumer electronics maker Sony Corp.