Japanese entertainment maker Sony raises forecast as profits rise

TOKYO (AP) — Sony said on Tuesday its quarterly profit through September rose 24% on healthy demand for its music and movies, prompting the Japanese entertainment and electronics giant to increase its annual sales and its earnings forecast.

Tokyo-based Sony’s July-September profit totaled 264 billion yen, or $1.8 billion, from 213 billion yen a year earlier.

Entertainment companies have tended to thrive during the pandemic as people stuck at home have turned to games and movies. Sony manufactures PlayStation video game consoles and also offers online games.

Sony shipped 3.3 million PlayStation 5 game consoles in the second fiscal quarter from April to March.

Although quarterly sales for Sony’s games business increased, its profit declined due to rising costs. Sony acquired US video game developer Bungie during the quarter.

In music, top-selling recordings included Beyonce’s “Renaissance” and Harry Styles’ “Harry’s House.” Among his films, “Bullet Train,” starring Brad Pitt, grossed $233 million worldwide.

Sony, which also makes camcorders and headphones, reported higher quarterly sales and profits for its imaging and sensor operations.

Sony raised its sales forecast for the fiscal year through March 2023 to 11.6 trillion yen ($79 billion) from an earlier projection of 11.5 trillion yen ($78 billion). Sony’s sales totaled 9.9 trillion yen in the previous fiscal year.

Sony also raised its profit forecast for the year to 840 billion yen ($5.7 billion) from 800 billion yen ($5.4 billion) previously. This is less than the 882 billion yen earned last year.

Sony is one of Japan’s stellar brands, having brought the Walkman portable music player to the world. But it had humble beginnings in the 1940s, when the nation was rebuilding from the ashes of World War II.

Over the past few decades, Sony’s electronics division has faced tough competition from cheaper Asian rivals. Sales of TVs that were once the mainstays of Sony power, for example, have declined.


Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

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