Sony Group Corp (NYSE:SONY) raised its full-year profit forecast by 15% largely thanks to the success of its pictures business, propelled by Spider-Man: No Way Home, which smashed box offices around the world to become the sixth-highest grossing movie ever.
The Japanese company’s pictures business increased profit more than seven-fold to US$1.3bn in its third quarter results released today.
It is now forecast to achieve full year profit of nearly US$1.8bn thanks to the US$1.7bn grossing movie that was released in December, despite worldwide lockdowns and restrictions caused by the omicron variant.
That area of Sony’s business was also helped by earnings from Venom: Let There Be Carnage, which surpassed the US$500mln earnings mark.
Sony’s announcement will have been well received by Cineworld Group PLC (LSE:CINE), which has been in need of support since its share price nosedived just before the first lockdown, failing to recover ever since.
The cinema chain is set to report its preliminary full year results next month and will be hoping Spider-Man has a similar affect on its revenue and profits as it did on Sony.
Cineworld did announce earlier this year that second half revenues were continuing to recover thanks to a string of highly successful film releases, which included the Spider-Man release and ‘No Time to Die’.
Speaking at the time, Cineworld chief executive Mooky Greidinger said he was pleased with the strong demand, adding it demonstrates “fans are continuing to choose the unrivalled theatrical experience.
However, the company’s debt stands at around US$8.4bn, and yesterday Cineworld said it is seeking an extension on scheduled payments to former shareholders Regal Entertainment, as it aims to maximise liquidity.
Cineworld has also faces a hefty court bill, nearly US$1bn, to be paid to Toronto based Cineplex (TSX:CGX) after pulling out of a deal before coronavirus.
Shares in Cineworld were down 0.37% in afternoon trading, changing hands at 35p.