Sony Slashes FY22 Profit Outlook On Sluggish PS5 Prospects

Sony Group Corp SONY reported first-quarter FY22 sales growth of 2% year-on-year to ¥2.31 trillion. Total gameplay time for PlayStation users declined 15% Y/Y in Q1.
Segments & Profits: Game & Network Services revenue declined 2% Y/Y to ¥604.1 billion, and operating income declined by 37% Y/Y to ¥52.8 billion.
Music revenue rose 21% Y/Y to ¥308.1 billion, and operating income increased by 10% Y/Y to ¥61 billion.
Pictures revenue increased by 67% Y/Y to ¥341.4 billion, and operating income rose by 100% Y/Y to ¥50.7 billion.
Entertainment, Technology & Services revenue declined 4% Y/Y to ¥552.3 billion, and operating income decreased by 25% Y/Y to ¥53.6 billion.
Imaging & Sensing Solutions revenue increased by 9% Y/Y to ¥237.8 billion, and operating income declined by 29% Y/Y to ¥21.7 billion.
Financial Services revenue declined by 28% Y/Y to ¥297.8 billion, and operating income rose by 239% Y/Y to ¥81.3 billion.
Consolidated operating income grew 10% Y/Y to ¥307 billion. EPS was ¥175.21.
Sony held ¥1.37 trillion in cash and equivalents.
Outlook: Sony cut its FY22 operating profit outlook to ¥1.11 trillion from ¥1.16 trillion as its PlayStation division stuttered and game sales declined. The gaming and network services group accounted for the revision, with the operating profit forecast reduced from ¥305 billion to ¥255 billion.
Sony’s PlayStation 5 hardware production was hampered by COVID-19 lockdowns in China.
Price Action: SONY shares closed higher by 1.04% at $87.56 on Thursday.
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