Sony smashes estimates with 32% rise in Q3 operating profit

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TOKYO (Reuters) – Japan’s Sony Group Corp posted on Wednesday a 32% rise in third-quarter operating profit, smashing analyst estimates.

Operating profit was 465.2 billion yen ($4.05 billion) in the three months to Dec. 31. That in contrast with an estimated common profit of 351.6 billion yen from 9 analysts surveyed by Refinitiv.

Sony hiked its full-year profit forecast to 1.2 trillion yen from 1.04 trillion yen. That prediction is increased than a median 1.09 trillion yen profit forecast from 24 analysts, Refinitiv information confirmed.

The conglomerate – spanning areas resembling leisure, sensors and monetary providers – switched to IFRS accounting requirements from U.S. GAAP in the present monetary yr.

Sony is benefiting from sturdy demand for its PlayStation 5 (PS5) video games console which it launched in November 2020. A scarcity of semiconductors, nevertheless, means it’s struggling to supply sufficient consoles to fulfill that demand.

The group mentioned final yr it can spend 2 trillion yen over three years on strategic investments, together with a push to increase subscribers to its gaming and leisure providers because it streamlines its shopper electronics enterprise.

On Tuesday, the corporate introduced it can purchase Bungie Inc, the unique creator of the “Halo” videogame, for $3.6 billion. That comes after XBox console maker Microsoft Corp mentioned final month it can buy “Call of Duty” maker Activision Blizzard for $69 billion.

The Japanese shopper tech firm may department out into electrical autos (EVs), with Chief Executive Kenichiro Yoshida unveiling a brand new EV prototype and saying the creation of a mobility enterprise at a tech commerce present in Las Vegas final month.

Growing demand for EVs is spurring new entrants into auto markets. Through EVs, Sony is aiming to construct a enterprise that can rework automobiles from transportation machines to leisure areas.

Sony has mentioned it can decide new companions for its EV mission primarily based on the know-how they’ll convey.

In November chipmaker Taiwan Semiconductor Manufacturing Co (TSMC) mentioned it had agreed to construct a $7 billion chip plant in Japan that can provide Sony with semiconductors for its picture sensor enterprise from 2024.

($1 = 114.7300 yen)

(Reporting by Sam Nussey; Editing by Muralikumar Anantharaman)



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