Sony's Q2 Profit Surges on Gaming And Sensor Gains, But PS5 Sales Decline, Raises Full-Year Outlook

Sony Group Corp (NYSE: SONY) reported fiscal second-quarter 2024 consolidated sales growth of 3% year-on-year to $19.44 billion (2.91 trillion Japanese yen), missing the analyst consensus estimate of $19.62 billion. 

EPS of $0.37 (55.74 yen) beat the analyst consensus estimate of $0.27.

Segments & Profits: Game & Network Services (G&NS) revenue increased 12% Y/Y to ¥1.07 trillion, and operating income climbed 184% Y/Y to ¥138.8 billion.

Higher sales of non-first-party game software titles and from network services, mainly PlayStation Plus, drove the growth.

Music revenue rose 10% Y/Y to ¥448.2 billion, and operating income increased by 12% Y/Y to ¥90.4 billion.  Higher revenues from live events, merchandising and licensing in Recorded Music and revenues from streaming services in Recorded Music and Music Publishing drove the growth.

Pictures revenue decreased by 11% Y/Y to ¥355.8 billion, and operating income declined 37% Y/Y to ¥18.5 billion, partly due to production delays related to the strikes in Hollywood in fiscal 2023.

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Entertainment, Technology & Services (ET&S) revenue grew by 1% Y/Y to ¥619.8 billion, and operating income increased by 15% Y/Y to ¥70.2 billion. 

Imaging & Sensing Solutions revenue (I&SS) increased by 32% Y/Y to ¥535.6 billion, and operating income climbed by 99% Y/Y to ¥92.4 billion. Higher sales of image sensors for mobile products drove the growth.

Financial Services revenue fell Y/Y to ¥(63.3) billion, and operating income increased by 319% Y/Y to ¥65.7 billion, driven by a decrease in revenue at Sony Life.

Consolidated operating income rose by 73% Y/Y to ¥455.1 billion. The net income grew 69% Y/Y to ¥338.5 billion.

Sony sold 3.8 million PS5 units in the quarter versus 4.9 million a year ago.

It held ¥2.13 trillion in cash and equivalents as of September-end.

Outlook: Sony expects fiscal 2024 sales of $87.05 billion or ¥12.71 trillion (prior $85.2 billion or ¥12.61 trillion) versus the $84.85 billion consensus. 

Price Action: SONY stock traded higher by 7% at $19.55 premarket at last check Friday.

Photo via Shutterstock

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