2024-05-14 08:41:08 ET
Sony Group Corporation (SONY)
Q4 2024 Earnings Conference Call
May 14, 2024, 03:00 ET
Company Participants
Hiroki Totoki - President, COO & CFO
Sadahiko Hayakawa - General Manager, Finance Department
Conference Call Participants
Junya Ayada - JPMorgan Chase & Co.
Mikio Hirakawa - Bank of America Merrill Lynch
Yasuo Nakane - Mizuho Securities Co.
Kota Ezawa - Citigroup
Ryosuke Katsura - SMBC Nikko Securities
Presentation
Unidentified Company Representative
The time has come to begin FY 2023 Financial Results announcement of Sony Group Corporation. I am from Corporate Communications. I'll be serving as master of ceremonies today. Let me introduce the people on the stage. First, Hiroki Totoki, President, COO and CFO; Naomi Matsuoka, Senior Vice President, Executive Officer in charge of Corporate Planning and Control, lead of group DE and high promotion and support for finance and entertainment area; Hayakawa Sadahiko, Senior Vice President, Executive Officer in charge of Finance and IR. These three will be explaining the results of FY '23 and forecast for FY '24 and fifth mid-range plan. After that, we are going to have Q&A. A total of 80 minutes is allocated.
Now Mr. Totoki, the floor is yours.
Hiroki Totoki
Today, I will explain this content. Matsuoka and Hayakawa will talk about our results for FY '23 and our result forecast for FY '24. And I will talk about the fifth midrange plan, which started this fiscal year. Hayakawa-san, please go ahead.
Sadahiko Hayakawa
Thank you. FY '23 consolidated sales were JPY13,020.8 billion, a new record high. Consolidated operating income was JPY1,208.8 billion. Net income was JPY970.6 billion, and consolidated adjusted EBITDA was JPY1,880 million. Furthermore, the JPY229.4 billion, operating income for the previous quarter was the highest ever for a fourth quarter.
Due to the partial spinoff of our Financial Services business, which is scheduled for October 2025, from this earnings announcement, we are also showing without the Financial Services segment. On a consolidated basis, excluding the Financial Services segment, sales were JPY11,265 billion. Operating income was JPY1,335.3 billion, and operating cash flow was JPY1,177.8 billion.
The performance by segment for FY '23 is shown on this slide. Next, I will explain our consolidated results forecast for the full FY '24. Our full year forecast is sales of JPY2,310 billion, operating income of JPY1,275 billion and net income of JPY925 billion. On a consolidated basis, excluding the Financial Services segment, sales are expected to be JPY11,400 billion and operating income is expected to increase 9% year-on-year to . The forecast for consolidated operating cash flow, excluding the Financial Services segment, is JPY1,400 billion, a significant increase of 19% year-on-year. The full year forecast by segment is shown here.
Now I will move on an explanation of the overview of each business. First is G&NS segment. FY '23 sales increased a significant 17% year-on-year to JPY4,267.7 billion, mainly due to increased third-party software sales and the impact of foreign exchange rates. Operating income increased year-on-year to JPY290.2 billion, mainly due to the increased sales. Operating income for the previous quarter was JPY106 billion, a new record high for the fourth quarter in this segment. The FY '24 forecast for sales is JPY4,200 billion and operating income is JPY310 billion. We expect acquisition-related expenses, including expenses related to the acquisition of for this fiscal year to be approximately JPY52 billion, a decrease a JPY17 billion year-on-year. ...
Read the full article on Seeking Alpha
For further details see:
Sony Group Corporation (SONY) Q4 2024 Earnings Call Transcript