Sony posts 10pc profit rise on image sensor boost

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)

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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.