Sony’s financial report for the quarter ending September 2021 – increase in mobile revenue
12.6% annual increase in income Sony in this turn to the positive performance of the four key subsets of this company, i.e. Game & Network Services G&NS), Sony Pictures, Music & Electronic Products & Solutions (or EP&S) is credited. Despite the significant growth, this income is still lower than the market forecast of 21.958 billion dollars.
Sony’s operating profit in this time period has also faced a surprising growth of 1%, although the expenses caused by the growth of sales of the PlayStation 5 console put pressure on the company’s gross profit margin. Sony posted an operating profit of 318.5 billion yen in the July-September 2021 period, which was much higher than the average operating profit of 222 billion yen predicted by six analysts (compiled by Refinitiv). Sony, of course, is optimistic about the future, raising its full-year revenue estimate by 6 percent from what it had announced in August, despite weaker profitability in its key games division, forecasting growth in movies, music and electronics. Is.
The new PlayStation 5 game console is still very popular in the market, the revenue of this segment has reached 645.5 billion yen with a significant growth in hardware sales, which shows a 27.4% growth compared to the same time last year. Other factors influencing this growth include the positive effect of foreign exchange rates and the sale of items made outside of Sony’s collection, including add-on content.
Operating profit This subset of Sony in the period from July to the end of September 2021 amounts to 82.7 billion yen, which compares with 105.4 billion yen last year, with a decrease of 21.5%. According to Sony, since the launch of the PS5 console in November last year, the company has sold nearly 13.4 million units of it, which shows an annual increase of 27%, but the profit of this collection is good considering that the device is sold at a figure lower than the full price.
Hiroki Totoki, Chief Financial Officer Sony The company has announced its intention to sell 14.8 million PS5 consoles this fiscal year; Something that certainly takes into account the chipset shortage crisis, and in this sense, it seems to be an interesting claim. Sony also announced, without providing further details, that it is considering a partnership with TSMC to build a chipset manufacturing plant in Japan.
Electronic Products and Solutions (EP&S)
As usual next From the games and network services segment, Sony’s highest revenue comes from the EP&S sub-group. This sub-set, which apart from multimedia products and home entertainment, also includes Sony’s smartphone division, achieved a revenue of 581.9 billion dollars between July and September 2021, which shows a 9.1% growth compared to last year. . Among the revenue growth factors in this sector, apart from the positive effect of currency conversion, the higher sales of this company’s smartphones have been mentioned, which is a rare thing for this subset, which is usually Sony’s loss.
Mobile section In the mentioned time frame, Sony achieved an income of 99.1 billion yen (nearly 870 million dollars), which compares with the income of 79.1 billion yen of this company in the previous year, indicating a growth of 25%. Sony has linked this growth to the increase in sales of its phones.
Sony’s electronic products and solutions division’s operating profit in the second quarter of Sony’s fiscal year 2021 was announced as 72.7 billion yen, and in this part, looking at the operating profit of 53.4 billion last year, we face a big and significant difference.
Imaging & Sensing Solutions
The Imaging & Sensing Solutions division is usually one of the brightest businesses of Sony, which is responsible for the manufacture of semiconductor products and the production of image sensors for cameras. . This subset, however, did not perform very well in the second quarter of Sony’s fiscal year 2021, and its sales of 278.3 billion yen decreased by 9.4% compared to the previous year. The main reason for this decrease is the decrease in the sale of image sensors for mobile products and the increasing role of a competitor as big as Samsung in this field.
The operating profit of this part also reached 49.7 billion yen, which Compared to the 50.8 billion yen of the previous year, it has remained almost constant with a decreasing trend. It has achieved a 17.6% increase compared to the previous year. This increase is related to several factors, including the sale of more music publications and recorded music, the increase in revenue from non-free subscribers of streaming services, and the increase in revenue from streaming services that rely on advertisements, the latter at the same time. The previous year was affected by the pandemic.
Operating profit of this department in the mentioned time period was announced as 50.6 billion yen, which shows a decrease of 6.7% compared to 54.3 billion yen last year.
Sony Pictures (Pictures) )
In the second quarter of the 2021 fiscal year, the company’s Sony Pictures subsidiary has achieved sales of 260.7 billion yen with an annual increase of 39.8%. This increase in income has been linked to higher sales in TV, Media Networks and Motion Pictures products, which have grown by 71, 53 and 14%, respectively. Of course, the operating profit in this subset is still lower than last year and has reached 31.6 billion yen from 32.8 billion yen.
Financial Services Department Sony In the second quarter of the fiscal year 2021, this company has achieved sales of 368.4 billion yen, which remained almost constant compared to the previous year with a slight deviation. Is. This reflects the higher income due to the increase in insurance premiums and the decrease in profit due to investment. Sony’s financial services division, along with the electronic products and solutions sub-set, are the only Sony sub-sets that experience a positive operating profit compared to the previous year. The operating profit of this Sony business between July and September last year was 43.1 billion yen, which has increased by 16.2% compared to 37 billion yen the year before.
Sony’s other divisions, which are not included in the above categories, achieved sales of 24.5 billion yen with a growth of 6.7%, and their operating profit has reached 8.6 billion yen from only 1.5 billion yen the previous year.