TOKYO (AP) - Japanese technology and entertainment powerhouse Sony Corp. reported an 18% increase in profit for the fiscal year ending in March, driven by robust performances in its music and video game sectors. The Tokyo-based company announced on Wednesday that its annual profit reached 1.14 trillion yen (approximately $7.8 billion), rising from 970.6 billion yen in the preceding fiscal year.
Although annual sales showed little change, registering a slight decline to 12.957 trillion yen (around $88 billion) from 13.020 trillion yen, certain divisions within Sony excelled. Notably, the film division and imaging and sensor solutions segments posted strong results, while the financial sector experienced stagnant revenue growth.
During the fiscal year, several films contributed positively to Sony's box office performance, including "Venom: The Last Dance," featuring the iconic Marvel Comics superhero, and "Bad Boys: Ride or Die," an action-comedy that marks the return of actors Will Smith and Martin Lawrence in their beloved cop roles for the fourth installment of the series.
In addition to its film successes, Sony, renowned for its PlayStation console and associated gaming software, reported favorable results within its gaming business. The company's music operations have also been resilient, encompassing recorded music, streaming services, and music for video games. Globally, the top-selling recorded music project for the fiscal year was SZA's "SOS Deluxe: LANA," followed closely by releases from icons like Beyoncé, Future & Metro Boomin, and Travis Scott.
In the Japanese music market, the standout was Kenshi Yonezu with his album "Lost Corner," followed by popular offerings from groups Stray Kids and Six Tones. This illustrates Sony's substantial impact and continued relevance in the global entertainment landscape.
For the January-March quarter, Sony reported a profit of 197.7 billion yen (about $1.3 billion), reflecting a 5% increase from 189 billion yen during the same quarter of the previous fiscal year. However, sales during this period fell by 24%, amounting to 2.6 trillion yen ($17.7 billion), a decline attributed to several external and internal pressures.
Looking ahead, Sony has projected a nearly 13% decrease in profit for the fiscal year ending in March 2026, anticipating a profit of 930 billion yen (roughly $6.3 billion) and sales of 11.7 trillion yen (approximately $80 billion), a year-on-year reduction of 2.9%. This forecast may raise concerns among investors and analysts regarding the company's future trajectory in an evolving entertainment and technology landscape.
Sony's executives are scheduled to address the media later in the day to unveil the company's latest growth strategies. Amid these developments, Sony stocks experienced a 3% decline in Tokyo morning trading, reflecting some investor apprehension about the forecasts and overall market conditions.
This comprehensive financial overview underscores Sony's mixed performance across its diversified business segments while signaling potential challenges ahead as the company navigates a competitive landscape in the years to come.
