2023-08-09 06:49:20 ET
Sony ( NYSE: SONY ) raised its full year total revenue outlook driven by expected performance of its gaming and entertainment business.
Outlook :
The company expects FY23 total revenue to be ¥12.2T, compared to forecast of ¥11.5T provided in April.
Sony said sales are expected to be higher than the April forecast due to higher-than-expected sales in Game & Network Service (G&NS), Financial Services, Music, and Entertainment, Technology & Services (ET&S) segments, partially offset by lower-than-expected sales in the Pictures and Imaging & Sensing Solutions (I&SS) segments.
G&NS sales for FY23 are expected to be ¥4.17T, compared to ¥3.9T as per the April forecast. The increase is due to an expected growth in sales of non-first-party titles including add-on content and the impact of foreign exchange rates, according to the company.
Sony noted that FY23 Sales in the Pictures segment are expected to be lower (¥1.47T) than the April forecast (¥1.52T), mainly due to the impact of the strike by Hollywood writers and actors which is expected to lead to lower revenues due to release date changes for some movies and delays in deliveries of television series.
I&SS sales forcast was also lowered to ¥1.56T, compared to ¥1.402T estimated in April. The decrease is mainly due to lower-than-expected unit sales of image sensors for mobile products, and image sensors for industrial and social infrastructure, according to the company.
Sony also pushed back expectations for a smartphone market recovery to 2024 at the earliest after evaluating worsening demand from China and the U.S., Bloomberg News reported .
ET&S sales in FY23 are expected to be 2.43T, versus prior forecast of ¥2.380T.
The company also raised its forecast of FY23 net income attributable to the group's stockholders to ¥860B, versus ¥840B in April.
Q1 results :
Sony's Q1 Operating income fell ~31% Y/Y to ¥253B. The companys said there was significant decreases in Financial Services and Pictures segments operating income, while there was growth in Music segment operating income.
Q1 total revenue grew ~33% Y/Y to ¥2.229T. The growth in sales was driven by significant increases in Financial Services, G&NS, I&SS and Music segments, according to Sony.
Sales in G&NS business grew ~27.8% to ¥771.88B, while Financial Services revenue increased ~215.4% to ¥681.4B.
ET&S sales increased 3.5% Y/Y to ¥571.78B, while Music sales rose ~16.2% Y/Y to ¥358.2B.
Pictures revenue fell ~6.15% Y/Y to ¥320.4B. I&SS sales rose ~23% Y/Y to ¥292.7B.
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Sony raises full year outlook on back of gaming and entertainment, smartphone market still weak