Japan’s Sony on Thursday reported a 1 percent rise in operating profit for its second quarter, beating estimates, as a stronger performance in its electronics business offset a fall in gaming profit.
Sony reported profit of JPY 318.5 billion (roughly Rs. 20,970 crore) for July-September. That compared with the JPY 222 billion (roughly Rs. 14,620 crore) average of six analyst estimates compiled by Refinitiv.
Sony, a conglomerate spanning entertainment, sensors, and financial services, switched to IFRS accounting standards from US GAAP in the current financial year.
Sony aims to sell 14.8 million of its PlayStation 5 gaming console this financial year – a target that takes into account the global semiconductor shortage.
The company said in July it had sold more than 10 million units since launching last November, outstripping sales of its predecessor.
To meet long-term demand, Taiwan Semiconductor Manufacturing Co plans to build a chip plant in Japan. Sony is considering being a partner in the factory, Nikkei reported earlier this month.
Across its business, Sony is enmeshed in a global battle for consumer attention as entertainment giants look beyond the United States for growth and mine non-English-language creators for content.
In a blow to Sony’s pop culture credentials, South Korea’s top cultural export, boy band BTS, said last week it has dropped its Columbia Records label for a deal with Universal Music Group NV.
Other challenges include an investor attempt to oust the management of India’s Zee Entertainment Enterprises, casting a shadow over merger talks with Sony’s local unit.
© Thomson Reuters 2021