Sony beat predictions as it reported its revenue and fiscal second-quarter earnings, due to a boost in its PlayStation gaming business, and stated that it expects its best profit since the year 1998.
The Japanese company disclosed that it foresees the operating income for the year ending March 31 to project 630 billion yen. If reached, this would be the highest profit for the company to achieve since it broke records in 1998 when it earned 526 billion yen. Sony’s first PlayStation console was gaining success.
On Monday, Sony announced that a number of new games will be released over the next few years, which will include some virtual reality games.
Sony reported for the three months to September 30, where sales of 2.06 trillion yen, in comparison with the expected 1.86 trillion yen. This also translates to a 22.1 percent year-on-year rise.
The company’s operating profit was at 204 billion yen which makes up for the 346.4 rise against the 135.6 billion yen expected. Sony also increased its dividend in the second quarter to 12.50 yen from the previous 10 yen.
Sony’s gaming and network business gained operating revenue rise 35.4 percent year-on-year to 433.2 billion yen, while its operating edged up to 54.8 billion yen, marking a 188.3 percent rise.
Sony Upholding Consumer Demands
Sony has been making a comeback under the control of Chief Executive Kazuo Hirai, resolving its struggling businesses while doubling down on the big profit earners which PlayStation has been a part of and possesses the components business.
In an interview, CEO Kazuo Hirai stated he was confident that the company was still able to produce “wacky” products to anticipating consumers.
“Sony is committed to making sure we innovate on both fronts – traditional products and also really new ideas, sometimes wacky ideas, but ideas that really wow our customers,” Hirai stated.
The Japanese company’s shares were trading around 2.7 percent higher after the results were released and showed around 35 percent year-to-date increase.
A loss in Sony’s semiconductor business due to an earthquake hitting its production managed to earn a profit of 49.4 billion yen in the quarter, an increase from the 4.2 billion yen of the said loss in the same period a year before. The company explained that the up in profit was because of the increased sales of image sensors for mobile outputs, which are incorporated by some of the smartphone giants around the world.
Recently, the company’s shares hit a nine-year high, although there are also doubts about where the forecasted growth would stem from. Sony has been investing in other fields such as VR and Artificial Intelligence.
BWorldFinance is your primary source of news in the financial market, technology, and more. Visit bworldfinance.com now and get the latest happenings on the market.