Sony Group Corp (NYSE:SONY), the Japanese conglomerate, reported mixed results after strong PlayStation and music sales helped offset weaker performances in its financial and TV divisions.
Total earnings dropped by around £613 million (112 billion Japanese Yen) year-on-year after all but two of its segments' incomes failed to outperform 2022 figures.
Entertainment, Technology & Services as well as Music were the only categories to report operating income growth, rising by just over £65 million and £10 million respectively, leading to total full-year sales forecasts being upped by £3.8 billion to £66 billion.
Strong album sales of artists such as Harry Styles, SZA and Miley Cyrus left management confident enough to lift full-year guidance for music sales by almost £440 million.
Releases from musicians like Blink-182, Travis Scott and Victoria Monet are expected over the next six months.
Sales of PS5's have soared compared to Xbox Series X Source Polygon
Having fought for the blocking of Microsoft’s merger with Activision over the last year, campaigning may now increase, especially as completion nears, as the group’s gaming division continues to be one of its star performers.
Sales in the category lifted by more than £910 million to reach £4.2 billion for the quarter, helping earnings rise by £260 million and leading to sales guidance for the year being increased by £1.4 billion.
Selling around 3.3 million PlayStation 5s during the three months to June, up from 2.4 million in 2022, Sony is now targeting 25 million sales of the console over the financial year, which would be a record for Sony console sales.
Likely reigniting talks of spinning out the group’s financial division, revenues in the category jumped by more than £2.5 billion year-on-year, the largest of any segment, but failed to feed through to operating incomes, with around a £460 million drop being reported.
Shares in Sony’s Japanese listing remained flat on Wednesday having opened at around 12,900 yen.