Sony's Q2: Gaming And Music Show Growth, PS Sales Outlook Unchanged

Sony Group Corp SONY reported second-quarter FY23 sales growth of 8% year-on-year to $19.58 billion (¥2.83 trillion), beating the consensus of $19.39 billion. Adjusted EPS of $1.12 missed the consensus of $1.16.

Segments & Profits: Game & Network Services (G&NS) revenue increased 32% Y/Y to ¥954.1 billion, and operating income climbed by 16% Y/Y to ¥48.9 billion.

Music revenue rose 14% Y/Y to ¥408.7 billion, and operating income increased by 3% Y/Y to ¥81 billion. Pictures revenue increased by 18% Y/Y to ¥399.6 billion, and operating income improved by 7% Y/Y to ¥29.4 billion.

Entertainment, Technology & Services (ET&S) revenue fell by 9% Y/Y to ¥613.5 billion, and operating income declined by 22% Y/Y to ¥61 billion. Imaging & Sensing Solutions revenue (I&SS) increased by 2% Y/Y to ¥406.3 billion, and operating income declined by 37% Y/Y to ¥46.4 billion.

Financial Services revenue declined 42% Y/Y to ¥103.9 billion, and operating income decreased by 80% Y/Y to ¥15.7 billion. Consolidated operating income declined by 29% Y/Y to ¥263 billion. 

Sony sold 4.9 million PS5 units in the quarter versus 3.3 million a year ago. It held ¥1.63 trillion in cash and equivalents.

Outlook: Sony revised its FY23 sales outlook to $87.32 billion (¥12.4 trillion) from the prior $90.37 billion (¥12.2 trillion) versus the consensus $82.8 billion. The company continues to see operating income of ¥1.170 trillion and raised its net income attributable outlook to $6.20 billion (¥880 billion) from the prior $6.37 billion (¥860 billion).

Sony remains committed to its target of selling 25 million PS5 units this fiscal year, emphasizing that profit will take precedence over achieving sales goals, according to a report from Bloomberg.

Price Action: SONY shares traded lower by 1.51% at $86.22 premarket on the last check Thursday.