Sony posts 10pc profit rise on image sensor boost
Business
Profit at the Japanese tech and entertainment conglomerate was 279 billion yen ($1.90 billion)
TOKYO (Reuters) – Sony on Wednesday booked a 10% rise in operating profit in the April-June quarter, beating analyst estimates, boosted by its industry-leading image sensor business.
Profit at the Japanese tech and entertainment conglomerate was 279 billion yen ($1.90 billion), compared with an average estimate of 275 billion yen from seven analysts polled by LSEG.
The impact from foreign exchange and higher sales helped profit at the image sensor business, a major supplier for smartphone makers, roughly triple to 36.6 billion yen.
A sprawling group encompassing music, movies, games and chips, Sony hiked its full-year profit forecast by 3% aided by foreign exchange rates.
The recent rise in the yen has left investors reassessing the outlook for Japanese multinationals, as the weak currency had provided a cushion for many heavyweight exporters.
Sony said its assumed exchange rate for the year is approximately 145 yen to the dollar.
In the first quarter Sony sold 2.4 million PlayStation 5 (PS5) units, fewer than a year earlier, but booked larger profit at the games business.
The group said in May it expects to sell 18 million PS5 units this fiscal year, compared to 20.8 million a year earlier.
The games industry is grappling with rising costs and weak pricing power. Sony-owned developer Bungie announced last week it is cutting almost a fifth of its workforce.
Sony's shares closed flat ahead of earnings and are down 8% year-to-date, giving the company a market capitalisation of just over $100 billion.
Japanese shares have been buffeted by volatility in recent days with the market falling heavily before bouncing back.
