Sony Earnings Surge on Gaming and Music, Pictures Take a Hit

Sony Group Corporation turned in a strong third quarter for 2024, riding high on gaming and music while its film unit faced headwinds. The tech and entertainment conglomerate posted consolidated revenue of JPY4.41 trillion ($28.6 billion), an 18% surge year-over-year, driven by robust gains in PlayStation sales and streaming music revenue.

Operating income landed at $3.05 billion, a modest 1% bump over the previous year. Net income attributable to Sony’s shareholders rose 3% to $2.43 billion, reflecting steady growth across key business segments.

The gaming and network services division proved to be Sony’s MVP, pulling in $10.92 billion, a 16% jump, on the back of strong PlayStation 5 sales and rising demand for third-party game software and network services. Operating income for the segment soared 37% to $767 million, reflecting higher revenue and improved profitability.

Meanwhile, Sony Music racked up $3.12 billion, marking a 14% lift thanks to higher streaming revenues in recorded music and publishing. Operating income climbed 28% to $632.5 million, driven by increased digital revenue and the consolidation of eplus Inc., a ticketing platform.

However, not all divisions were in the green. Sony Pictures Entertainment saw a 9% revenue increase to $2.58 billion, but its operating income slumped 18% to $220.8 million. Sony attributed the decline in operating income to higher marketing costs for theatrical releases and weaker licensing revenues for catalog titles. Crunchyroll, Sony’s anime streaming platform, contributed to revenue growth, but operating costs weighed down overall profitability.

The Imaging & Sensing Solutions unit, which supplies camera sensors for smartphones, was essentially flat at $3.25 billion, with a slight dip in operating income to $632.8 million. Sales of image sensors for mobile devices took a hit due to lower unit shipments.

Sony’s Financial Services arm, typically a stable performer, recorded $4.66 billion in revenue—a dramatic 130% increase—yet its operating income tumbled 40% to ¥46.4 billion ($300.9 million), weighed down by insurance finance expenses.

Looking ahead, Sony revised its full-year outlook, now expecting $85.75 billion in revenue and $7.01 billion in net income attributable to shareholders, a 10% upgrade from prior estimates. The company also reaffirmed its commitment to rewarding investors, maintaining a projected dividend of JPY100 per share pre-split.