Updated February 14th, 2024 at 13:16 IST

Sony’s Q3 profit surges 10%, plans financial group listing in 2025

Sony's third-quarter profit amounted to 463.3 billion yen ($3.08 billion), significantly surpassing the average estimate of 428 billion yen from analysts.

Reported by: Business Desk
Sony | Image:Unsplash
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Sony Q3 results: Sony reported a notable 10 per cent increase in operating profit during the third quarter, surpassing analysts' expectations. The surge in profit was driven by the robust performance of its financial, movie, and music businesses. In line with its strategic direction, Sony announced plans to list Sony Financial Group in October 2025, while retaining a stake of just under 20 per cent in the financial arm. This move aligns with Sony's focus on expanding its presence in the entertainment and image sensor sectors.

Once renowned for inventing the Walkman, Sony has evolved from an electronics manufacturer into a multifaceted entertainment and technology conglomerate, encompassing movies, music, games, and chips. The company's third-quarter profit amounted to 463.3 billion yen ($3.08 billion), significantly surpassing the average estimate of 428 billion yen from analysts.

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In the gaming segment, Sony sold 8.2 million PlayStation 5 units during the third quarter, marking an increase from the previous year. However, operating profit in the games division declined by approximately a quarter, primarily due to increased hardware losses stemming from promotions and lower sales of first-party titles. Despite this, the company achieved success with the release of "Marvel's Spider-Man 2," selling 10 million copies since its launch on Oct. 20.

Meanwhile, Nintendo recently raised its full-year Switch forecast to 15.5 million units, indicative of the extended lifecycle of the console. Microsoft is expected to provide updates on its games business later in the week.

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Sony's chips division experienced an 18 per cent increase in profit, driven by higher sales. Additionally, TSMC announced plans to establish a second fab in Japan in collaboration with Sony, underscoring confidence in the country's leading contract chipmaker.

However, Sony recently abandoned plans for a $10 billion merger of its Indian business with Zee Entertainment, which would have created a significant presence in the television industry.

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(With Reuters inputs)

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Published February 14th, 2024 at 13:16 IST