Sony Q1 op­er­at­ing profit falls just 1.1% beat­ing an­a­lyst es­ti­mates

The Star Malaysia - StarBiz - - Foreign News -

TOKYO: Ja­pan’s Sony Corp re­ported a 1.1% de­cline in first-quar­ter op­er­at­ing profit, much milder than mar­ket es­ti­mates as its gam­ing busi­ness thrived while con­sumers locked down at home looked for en­ter­tain­ment and down­loaded more games.

The elec­tron­ics and en­ter­tain­ment firm yes­ter­day posted April-june profit of 228.4 bil­lion yen (Us$2.15bil), ver­sus 230.9 bil­lion yen a year prior.

The re­sult com­pared with the 143.21 bil­lion yen av­er­age of 10 an­a­lyst es­ti­mates com­piled by Refini­tiv.

The firm also forecast profit to fall 26.7% to 620 bil­lion yen in the year through March 2021, its low­est in four years, but bet­ter than a drop of at least 30% it es­ti­mated in May.

The im­pact of the novel coro­n­avirus on Sony has been lim­ited com­pared with Ja­panese elec­tron­ics peers such as Pana­sonic Corp due to its pur­suit of re­cur­ring rev­enue such as sub­scrip­tion fees on gam­ing con­tent.

To ac­cel­er­ate the port­fo­lio shift to such rev­enue streams, Sony re­cently in­vested in Chi­nese video site Bili­bili Inc and Epic Games, cre­ator of the pop­u­lar video game Fort­nite.

Sony forecast its gam­ing busi­ness to post a profit of 240 bil­lion yen for this fi­nan­cial year, ver­sus 238 bil­lion yen a year ear­lier, driven by a sharp rise in software sales.

The firm is sched­uled to launch its Playsta­tion 5 con­sole dur­ing the year-end holiday shop­ping sea­son, seven years af­ter its pre­vi­ous-gen­er­a­tion games con­sole.

It ex­pects its im­age sen­sor busi­ness, which sup­plies cam­era sen­sors to global smart­phone mak­ers in­clud­ing Ap­ple Inc and Huawei Tech­nolo­gies Co Ltd, to re­port profit of 130 bil­lion yen, com­pared with 235.6 bil­lion yen a year ear­lier.

The world­wide smart­phone mar­ket is forecast to de­cline 12% year over year in 2020, ac­cord­ing to re­searcher IDC, even though the im­pact of the shrink­ing mar­ket on Sony would be par­tially off­set by smart­phone mak­ers’ adop­tion of mul­ti­ple-lens cam­eras. — Reuters

Profit warn­ing: The Sony head­quar­ters build­ing in Tokyo. Sony warned an­nual prof­its were likely to see dou­ble-digit falls as the coro­n­avirus pan­demic con­tin­ues to cloud the forecast. — AFP

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