May 14 2024: Sony (TYO:6758) (NYSE:SONY) anticipates a 5% rise in operating income for the current fiscal year, with a significant boost expected from increased sales of its imaging sensors.
The Japanese conglomerate attributes this positive outlook to strong demand for its imaging sensors used in smartphones, which has helped offset sluggish performance in other divisions, notably the gaming unit.
Sales from Sony’s imaging and sensing solutions division are forecasted to reach 1.84 trillion yen, up from 1.60 trillion yen in the previous fiscal period. The segment’s profitability is also set to improve due to reduced expenses related to the mass production of new sensors for mobile devices.
Although hardware sales are projected to decline in the gaming segment, particularly with the PlayStation 5 console, lower hardware losses and robust performance in the PlayStation Plus subscription service are expected to contribute to increased adjusted profits in 2024.
Sony’s movie studios division is anticipated to maintain flat sales and income compared to the previous year. This forecast coincides with reports of potential takeover discussions between Sony Pictures and Apollo Global Management for Paramount Global, a move that could significantly impact the entertainment industry.
In the fiscal year ended on March 31, Sony reported a 7% decrease in adjusted operating income, primarily influenced by currency fluctuations and heightened demand for streaming music services.
