Sony Group Corporation reported mixed financial results for the first quarter of fiscal year 2024, with overall sales reaching 3,011.6 billion yen (US$22.2 billion), a 2% increase compared to the same period last year. This growth was primarily driven by the Game & Network Services (G&NS) and Music segments, which saw significant increases in sales and operating income.
The G&NS segment, buoyed by strong sales of first-party game software and network services such as PlayStation® Plus, recorded a 12% rise in sales to 864.9 billion yen (US$6.4 billion). The segment’s operating income surged by 33% to 65.2 billion yen (US$482 million), reflecting improved profitability from gaming services and PlayStation 5 peripherals.
The Music segment also reported a 23% increase in sales to 442.0 billion yen (US$3.3 billion), attributed to higher revenues from streaming services and live events. Operating income in this segment rose by 17% to 85.9 billion yen (US$635 million), driven by increased sales in recorded music and music publishing, as well as favorable foreign exchange rates.
However, Sony’s Financial Services division faced challenges, with revenue plummeting by 34% to 448.6 billion yen (US$3.3 billion), largely due to decreased revenues at Sony Life and reduced investment gains. This decline led to a significant drop in operating income for the segment, down 45% to 30.0 billion yen (US$222 million).
Despite a 10% increase in overall operating income to 279.1 billion yen (US$2.1 billion), net income attributable to Sony’s stockholders fell by 8% to 210.0 billion yen (US$1.6 billion). The company cited adverse foreign exchange impacts and increased income tax expenses as factors affecting profitability.
Sony has updated its outlook for fiscal year 2024, revising its consolidated sales forecast to 12,610 billion yen (US$92.9 billion), up by 300 billion yen from the previous estimate. The operating income forecast has also been raised by 35 billion yen to 1,310 billion yen (US$9.7 billion). These upward revisions are primarily attributed to expected growth in the G&NS and Music segments, supported by favorable foreign exchange conditions and increased demand for gaming and music services.
