Sony Sees Higher Profit from Image Sensors, to Conduct Stock Split

Reuters

16:26 JST, May 14, 2024

TOKYO (Reuters) – Sony Group 6758.T said on Tuesday it sees operating profit growing 5% to 1.28 trillion yen ($8.2 billion) this business year with a boost coming from its image sensors.

Sony is a major supplier of image sensors for smartphones and that business is expected to book a 40% rise in operating profit on higher sales and lower costs.

The Japanese conglomerate said it would conduct a five-for-one stock split and buy back up to 2.46% of its shares worth 250 billion yen.

It sold 20.8 million PlayStation 5 units last year, narrowly missing its revised target of 21 million units issued in February following weaker-than-expected sales over the year-end shopping season.

Sony sees profits at its gaming business rising 7% in the current year due to smaller hardware losses as it sells fewer consoles, and higher sales from its PlayStation Plus subscription service.

Known as the inventor of the Walkman and the MiniDisc, Sony has transformed from an electronics manufacturer into an entertainment and technology juggernaut spanning movies, music and games and chips.

The Japanese tech conglomerate plans a partial spin-off of its financial unit with a listing in October 2025 in order to focus on its entertainment and chips units.

The gaming sector has been hit by a slowdown with Xbox maker Microsoft MSFT.O last week moving to shutter studios including Tokyo-based Tango Gameworks in the latest cost-cutting measures.

Sony said in February it would lay off 900 workers at its gaming business and shutter a London studio.

Sony Pictures last week sent a letter expressing interest in acquiring Paramount PARA.O with private equity firm Apollo APO.N, Reuters reported.

A deal would create a formidable Hollywood studio with a share of around 20% of the North American box office.

In the year ended March, Sony recorded a 7% fall in operating profit, due to lower profits at its life insurance business. The result was in line with estimates.

$1 = 156.4900 yen