PlayStation 5 Maker Sony Clocks 15% Revenue Growth, Sells 2.3M PS5 In Q1, Updates FY21 Outlook

Sony Group Corp SONY reported first-quarter FY21 sales growth of 15% year-on-year to ¥2.26 trillion.
Revenue from Game & Network Services (G&NS) rose 9.7% Y/Y to ¥615.8 billion, Music increased 77.8% Y/Y to ¥254.9 billion, Pictures climbed 29.6% Y/Y to ¥204.7 billion, Electronics Products & Solutions (EP&S) grew 214.9% Y/Y to ¥576.3 billion, Imaging & Sensing Solutions (I&SS) rose 11.9% Y/Y to ¥218.1 billion, and Financial Services declined 25.9% Y/Y to ¥414.4 billion.
All Other sales decreased 3.3% Y/Y to ¥22 billion.
Sony sold 2.3 million PS5 units in Q1, down 30% compared to Q4, 0.5 million PS4 units, and 2.2 million TVs up 47% Y/Y.
The gross margin contracted 187 bps to 44.7%, while the operating margin expanded by 111 bps to 12.4%.
EPS of ¥169.22 increased 8.9% Y/Y. Net income of ¥213.12 billion grew 4.35% Y/Y.
Sony generated ¥198.7 billion in operating cash flow and held ¥2.1 trillion in cash and equivalents.
Outlook: Sony sees FY21 sales of ¥9.7 trillion. It raised the operating income guidance to ¥980 billion from ¥930 billion earlier.
Sony reduced the operating cash flow guidance to ¥890 billion from ¥910 billion, but it raised the net income guidance to ¥700 billion from ¥660 billion.
Price action: SONY shares traded higher by 0.39% at $104.08 in the premarket session on the last check Wednesday.
Photo by Marco Verch via Flickr

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