Sony posts record April-June profit, raises FY 2018 outlook

  • Sony posts record April-June profit, raises FY 2018 outlook

Sony posts record April-June profit, raises FY 2018 outlook

Software sales increased 5% year-over-year in Q1'18 although hardware sales were down 3% from last year.

Annual sales are now projected to rise slightly, with operating profit unchanged.

The upward revisions were largely due to foreign exchange gains, brisk sales of PlayStation 4 software including "God of War", and the growing value of Sony's shares in top streaming platform Spotify. It now expects a group net profit of 500 billion yen, up 1.9 percent from the previous year.

This is stark contrast to April this year, when the company's Chief Executive Officer Kenichiro Yoshida gave a rather pessimistic forecast for the full year, which sent Sony's shares plunging.

"It has been a smooth power transfer", he added, and the company "is forecast to continue displaying a strong performance at quite high levels".

Hirai spent the past six years salvaging the company from deep financial troubles, leading aggressive restructuring and terminating thousands of jobs while selling business units and assets. That being said, Sony seems to be optimistic about the next year. Nile's 40 percent-held affiliate owns EMI Music Publishing, which will be Sony's wholly owned unit in the future. The company generated an operating profit of ¥195 billion (~$1.7 billion), which was much higher than the projections of ¥145.5 billion (~$1.3 billion).

Sony Corp. says its profits almost tripled in the latest quarter, boosted by a jump in PlayStation 4 software sales.

To that end, Sony has been expanding businesses that promise stable revenue streams, such as online gaming services and music content libraries, while minimizing the impact of the volatile sales cycles of game consoles and other electronic gadgets.

As usual, each month of free games for PlayStation Plus also brings with it a handful of other noteworthy titles that act as a supporting cast of sorts for the Triple-A headliners, and August 2018 is no different.

The figure is down from the same period last year, but Sony's forecast for this year predicts that sales will be down by 3 million year-on-year, with total units sold in the vicinity of 16 million. Operating income has also increased to 83.5 billion yen ($750 million). This would inch the PS4 to the magical number of 100 Million shipped consoles.