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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
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