Sony has unveiled its financial results for the fiscal year ending March 31, showcasing significant gains in certain divisions, while other sectors continue to face challenges. Notably, the company’s image sensor division is experiencing record-breaking sales, bolstered by rising demand for smartphone camera technology. Additionally, its entertainment business, including movies, TV, and music, continues to perform strongly, with PlayStation operating income also seeing positive growth, primarily driven by games and PS Plus subscriptions.
However, the smartphone business remains a weak spot for Sony, with the division continuing to shrink.
The Imaging & Sensing Solutions (I&SS) division reported impressive figures, generating JPY 1.799 trillion in sales, up JPY 196 billion from the previous year. Operating income rose to JPY 261 billion, marking an increase of JPY 67.6 billion year-on-year. The increase in sales is attributed to higher unit sales of smartphone image sensors and an improved product mix, focusing on more expensive models. However, Sony cautions that rising manufacturing costs and increased R&D expenses are expected, as the company pushes forward with advanced semiconductor nodes sooner than planned. This shift is aimed at increasing the density of both horizontal and vertical planes of its sensors.
Despite these challenges, the I&SS division stands out with its record-breaking sales and operating income, solidifying its role as a major contributor to Sony’s overall performance.
In contrast, the Entertainment, Technology & Services (ET&S) division saw a slight dip in sales, from JPY 2.453 trillion to JPY 2.409 trillion. However, operating income saw a small increase, rising from JPY 187 billion to JPY 190 billion. The smartphone segment, particularly Mobile Communications, struggled, with sales declining from JPY 299 billion to JPY 279 billion. For perspective, this figure represents about half of what the TV segment generated. Both TV and smartphone unit sales were down, reflecting a general decline in demand.
Meanwhile, the Game & Network Services (G&NS) division reported strong growth in sales, particularly from third-party games and add-on content, although first-party game sales have decreased. More users have also shifted to higher-tier PlayStation Plus subscriptions, contributing to the increase in network services revenue. Overall, G&NS saw total sales rise to JPY 4.670 trillion, up from JPY 4.267 trillion, with operating income growing from JPY 290 billion to JPY 414 billion.
In other segments, Sony Pictures reported a rise in movie sales, though TV productions saw a downturn, partly due to the WGA and SAG strikes. Online subscriptions and advertising revenue also declined. On a positive note, Crunchyroll, Sony’s anime streaming platform, reported growth in paid subscribers, driving higher revenues. Additionally, Sony’s acquisition of the Alamo Drafthouse cinemas seems to be progressing well. Sony Music also saw a boost, with streaming sales contributing heavily to the increase in overall operating income, which grew from JPY 301 billion to JPY 357 billion.
Overall, while Sony faces difficulties in some areas, its image sensors, entertainment services, and PlayStation network services are showing strong performance. The company continues to adapt to industry trends, with strategic investments in technology and media.