Jun 30, 2021
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Sony Q1 2022 Earnings Report

Sony reported solid Q1 FY21 results with higher revenue and profit driven by strong Music and EP&S segments, despite a decline in G&NS operating income.

Key Takeaways

Sony posted revenue of ¥2.26 trillion and net income of ¥211.8 billion for Q1 FY2021. Significant gains were seen in the Music and Electronics Products & Solutions segments, while Financial Services and G&NS posted weaker operating results. EPS grew to ¥169.22.

Revenue grew 15% YoY to ¥2.26 trillion

Net income increased to ¥211.8 billion from ¥193.6 billion

Music and EP&S segments drove revenue and profit growth

G&NS and Financial Services segments posted lower operating income

Total Revenue
¥2.81T
Previous year: ¥250T
-98.9%
EPS
¥42.2
Previous year: ¥18.9K
-99.8%
EPS Growth
8.98%
Previous year: 155.27%
-94.2%
Net Income Margin
9.39%
Gross Profit
¥96.2T
Previous year: ¥68.6T
+40.3%

Sony

Sony

Sony Revenue by Segment

Forward Guidance

Sony expects FY21 to end with higher sales and operating income driven by strong performance in Music, Pictures, and EP&S. However, Financial Services is forecasted to see margin pressure.

Positive Outlook

  • Upward revision in Music segment operating income forecast (+¥28B)
  • Strong Q1 performance in EP&S led to higher full-year guidance
  • Stable outlook for Pictures segment profitability
  • Solid recurring revenue from subscription streaming services
  • Favorable FX expected to benefit export-heavy segments

Challenges Ahead

  • Decline in Financial Services revenue YoY
  • G&NS segment impacted by lower PS4 hardware sales and aggressive PS5 pricing
  • Lower-than-expected TV sales in EP&S
  • Increase in SG&A expenses across segments
  • Uncertainty in theatrical and TV production schedules due to COVID-19

Revenue & Expenses

Visualization of income flow from segment revenue to net income