Sony’s annual net profit experienced a slight 3.5 percent decline compared to the previous year, yet exceeded expectations, propelled by robust performances in the gaming and music sectors, which offset setbacks in finance and chip industries.
Reports suggesting a potential collaboration with Apollo Global Management on a bid for Paramount Global, the US film and TV giant, have drawn attention to Sony. While the company has refrained from commenting on these reports, the speculated $26 billion proposal underscores Sony’s strategic ambitions.
The company’s stellar movie sector, highlighted by blockbusters like “Spider-Man” and the critically acclaimed “Across the Spider-Verse,” could receive a significant boost from such a takeover.
Sony’s net profit for the fiscal year reached 970.6 billion yen ($6.2 billion), surpassing its own forecast of 920 billion yen, driven by notable sales growth in gaming and music, aided by currency fluctuations. Despite revenue increases in sensor technology and financial services, operating income in these areas declined.
Looking ahead, Sony anticipates a decrease in sales, particularly in financial services, but projects improvements in sensor technology and music revenue, buoyed by the popularity of streaming services.
Analysts highlight Sony’s robust music division as a key revenue driver, with ownership of original music rights proving lucrative.
Additionally, Sony Music Entertainment is reportedly eyeing a bid for InfoCom, the parent company of a prominent Japanese manga app, indicating the company’s diverse strategic investments.
The PlayStation 5 console, with sales nearing its revised target of 21 million units, faced challenges following layoffs announced by Sony PlayStation earlier this year.
Sony announced the appointment of two veteran executives to lead its gaming unit, succeeding Jim Ryan, who retired in March. Hermen Hulst and Hideaki Nishino will report to Sony Interactive Entertainment’s group chairman, Hiroki Totoki, signaling continuity in leadership.
