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Sony (SONY.US) beats revenue estimates, raises full-year profit guidance on strong image sensor business

AInvestWednesday, Aug 7, 2024 3:40 am ET
1min read

Sony (SONY.US) announced its results for the first quarter ended June 30, 2023, with its leading industry image sensor business boosted by strong performance, resulting in a 10% YoY increase in operating profit to 279.1 billion yen (US$19.9 billion), beating analyst estimates of 275 billion yen. Revenue was 30.1 trillion yen, up 2% YoY, beating market estimates of 28 trillion yen. Net income was 231.6 billion yen, up 6.5% YoY.

Profit from the image sensor business, which supplies the main supplier of image sensors for smartphone manufacturers, more than doubled YoY to 36 billion yen due to the impact of foreign exchange and sales growth.

Sony expects its full-year operating profit to rise to 1.31 trillion yen from 1.28 trillion yen.

Sony sold 240,000 PlayStation 5 (PS5) units in the first quarter, down from the previous quarter, but profits from the gaming business increased due to the increase in first-party software sales. The company said in May that it expects to sell 18 million units of the PS5 this fiscal year, down from 20.8 million units in the same period last year, as the gaming industry struggles with rising costs and weak pricing power. Sony’s first-party developer Bungie announced last week that it would cut nearly a fifth of its workforce.

Sony said that as of June 30, 2024, the cumulative sales of the PS5 had surpassed 61 million units. Revenue from Sony’s gaming and network services business increased 12% YoY in the first quarter, with operating profit more than doubling to 65.2 billion yen. According to first-quarter data, Sony revised its forecast for its gaming business for the fiscal year (April 1, 2024 to March 31, 2025), raising its revenue and operating profit forecast by 3%.

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