Profit forecasts climb at Sony after bumper second quarter
Sony Corporation
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Playstation owner Sony has increased full-year forecasts after strong demand for popular games like Marvel’s Spider-Man and God of War bolstered profits.
The Japanese electronics group is now looking for annual profits of JPY870bn, a 30% hike on July’s estimate. Analysts had been looking for annual profits of around JPY796m.
The revision came on the back of a strong second quarter, which saw sales and operating revenue rise 6% to JPY2.18bn and operating income improve 17% at JPY239.5m.
Within that, Sony’s game and network services division – its biggest profit driver – reported a jump in quarterly sales, up from JPY433.2m in 2017 to JPY550.1m. Operating income was JPY90.6m against JPY54.8 in the second quarter 2017.
Chief financial officer Hiroki Totoki told journalists that Sony had been “very blessed with some strong blockbuster titles” and that the line-up remained strong for the second half of the year.
God of War sold 3.1m units in the first three days of sale in April, while Marvel’s Spider-Man set a fresh record when it sold 3.3m in its first three days in September. Another Sony title, Red Dead Redemption II, was released this month to widely positive reviews.
In recent years, Sony has shifted its focus away from the more mature consumer electronics markets to concentrate on content, which is seen as less susceptible to consumer fashions and earnings spikes.
Rival Nintendo also reported an improvement in second-quarter profits on Tuesday, although its 30% increase was below analyst expectations.