Sony Group reveals financial year results, future plans
Date
5/14/2024 9:22:17 AM
(MENAFN) Sony Group, a prominent Japanese conglomerate, disclosed a 7 percent decline in operating profits for the fiscal year ending in March, amounting to 1.2 trillion yen, approximately USD7.67 billion. This figure aligns with the average predictions of the London Stock Exchange Group (LSEG). Looking ahead, Sony anticipates a 5 percent growth in operating profits for the current fiscal year, projecting a total of 1.28 trillion yen, around USD8.18 billion. This optimistic outlook is fueled by expectations of increased profitability in its image sensor division.
In a strategic move to broaden its investor base, Sony Group has announced a five-for-one stock split. Additionally, the company has earmarked 250 billion yen, equivalent to USD1.6 billion, for share buybacks. These initiatives signify Sony's commitment to enhancing shareholder value and capitalizing on potential growth opportunities.
As a leading supplier of image sensors for smartphones, Sony foresees a 40 percent surge in operating profits within its chip business. This projection is attributed to anticipated growth in sales coupled with operational efficiency improvements.
However, Sony anticipates a revenue decline in its gaming unit as the PlayStation 5 enters its fourth year. Despite this, the company remains optimistic about future profitability in this sector, citing efforts to enhance user engagement and implement cost-saving measures. Sony expects PlayStation 5 sales to decrease to 18 million units, slightly below the revised target of 21 million units set in February following weaker-than-expected sales during the year-end shopping season.
Nonetheless, Sony predicts a 7 percent increase in gaming sector profits for the upcoming year. This growth trajectory is attributed to reduced hardware losses stemming from lower console sales, as well as heightened revenues from the PlayStation Plus subscription service. Overall, Sony Group remains poised for continued success and strategic expansion across its diverse portfolio of businesses.
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