Tokyo (dpa) – Strong sales of Playstation games have brought Sony through the Corona crisis well so far – but the Japanese electronics giant is already preparing for a decline in profits in the current financial year.
Among other things, Sony expects worse business with its camera sensors. They are used in smartphones from many manufacturers, but the mobile phone market is currently under pressure.
In the past quarter, the Playstation business was able to cushion the declines in other areas very well. The net profit rose in the end of June closed first quarter of the year by 53.3 percent to 233.2 billion yen (1.9 billion euros). Sales increased 2.2 percent to 1.97 trillion yen.
In the games sector, sales jumped almost a third to 606 billion yen. On the one hand, the video games business recorded strong growth overall during the pandemic – on the other hand, there was a new exclusive Playstation game with “The Last of Us Part II”. Operating profit rose from 74 to 124 billion yen. Sony is now preparing for the launch of the Playstation 5 for the Christmas season. Sales of the current Playstation 4 have been falling accordingly for some time.
Sony’s film and TV broadcast business also contributed 24 billion yen to quarterly earnings despite closed cinemas – thanks to increased television revenues. At the same time, Sony anticipates that the negative effects of the Corona crisis will be felt in the film business for another two to three years.
In the electronics business, the former core division of Sony, sales slumped by 31 percent to around 332 billion yen. The corona crisis led to lower sales of digital cameras, televisions and other audio and video technology. Operating income was down 9 billion yen instead of 25 billion yen in profit a year earlier. In the rest of the financial year Sony hopes for a better result in the division thanks to austerity measures.
In the case of camera sensors, there was a drop in sales of eleven percent to a good 206 billion yen in the last quarter, and operating profit halved to around 25 billion yen. For the entire fiscal year, Sony expects sales in the division to decline by seven percent.
For the entire group, Sony now expects a profit decline of 12.4 percent to 510 billion yen for the fiscal year that runs until the end of March 2021.