Stay connected
Sony Corp. Japan reported a 1.1% drop in first-quarter operating profits on Tuesday, more moderate than market estimates, as its gaming business flourished as consumers sought entertainment and downloaded more games.
The electronics and entertainment company reported a profit from April to June of 228.4 billion yen ($2.15 billion), up from 230.9 billion yen the previous year.
The result compares to the 143.21 billion yen of the 10 analyst estimates compiled through Refinitiv.
The company also expects profits to fall 26.7% to 620 billion yen until March 2021, its lowest level in 4 years, higher than a drop of at least 30% that it had estimated in May.
The effect of the new coronavirus on Sony has been limited compared to its Japanese electronic peers like Panasonic due to its search for recurring revenue, such as subscription fees on game content.
To boost the portfolio’s movement to such revenue resources, Sony recently invested in the Chinese video site Bilibili and Epic Games, author of the prominent video game Fortnite.
Sony predicted that its gaming business would generate a profit of 240 billion yen for the monetary year, up from 238 billion yen the previous year, thanks to the sharp increase in software sales.
The company is expected to launch its PlayStation 5 console in the year-end grocery shopping season, seven years after its next-generation game console.
He hopes his symbol sensor business, which incorporates camera sensors into global smartphone brands added by Apple and Huawei Technologies, will make a profit of 130 billion yen, up from 235.6 billion yen the previous year.
The global smartphone market is expected to decline by 12% year-on-year by 2020, according to researcher IDC, although the effect of the contraction of Sony’s smartphone market would be partially offset by adoption through multi-purpose smartphone brands. Cameras.
Do you have any confidential information? We want to hear from you.
Sign up for loose newsletters and get more CNBC in your inbox
Get it in your inbox and more information about our services.
© 2020 CNBC LLC. All rights are reserved. An NBCUniversal department
Knowledge is a real-time snapshot: data is delayed for at least 15 minutes. Global industry and monetary news, inventory quotes and market knowledge and analysis.
Data also by