Sony Sees Strong Q2, Forecasting Highest-Ever Annual Profit

Sony Corporation reported a 346-percent increase in Q2 operating income and said that it expects to post its highest-ever profit this year.

Sales and operating revenue increased by 22.1 percent compared to the same quarter of the previous fiscal year to 2,062.5 billion yen ($18.2 billion). Operating income was up 346.4 percent to $1.8 billion. There was a 35.4-percent increase year-on-year in the Game & Network Services segment, where operating income was up 188.3 percent. There was a nice increase in PlayStation4 (PS4) software sales, including sales through the network, the impact of foreign exchange rates, as well as an increase in PS4 hardware sales.

The Pictures unit saw sales increase 27 percent year-on-year (a 17-percent increase on a U.S. dollar basis). The significant increase in sales on a U.S. dollar basis was primarily due to higher sales in Motion Pictures and Media Networks. Motion Pictures sales increased significantly, thanks to the strong worldwide theatrical performance of Spider-Man: Homecoming. Media Networks sales increased significantly primarily due to higher advertising and subscription revenues from TEN Sports Network and SPE’s other networks in India. Operating income was up 140 percent year-on-year.

Sony has now revised its outlook, forecasting an operating profit of 630 billion yen ($5.6 billion)—up from the previously forecasted 500 billion yen—for the year to March. The last time it reported figures close to that amount was in 1998.