Sony's Profit Soars on Strong Entertainment Performance
Sony Group Corp.'s stock surged on Friday after the entertainment conglomerate raised its profit and revenue outlook. The stock climbed as much as 11% in Tokyo, the highest since August.
A surge in demand for the PlayStation 5 over the holiday quarter helped Sony beat expectations. The company now expects net income of ¥1.08 trillion ($7 billion) for the year ending March 2025, 10% higher than previous estimates.
Sony's music segment also contributed to the earnings boost, with streaming services driving revenue growth.
Complementing the positive earnings, Sony announced a share buyback program of up to 30 million shares, valued at ¥50 billion.
Chief Financial Officer Hiroki Totoki's promotion to CEO in April will bring continuity to Sony. He is expected to continue expanding the company's entertainment portfolio.
Sony recently launched PlayStation 5 Pro, a more powerful version of its flagship console. This has fueled momentum for console sales, with blockbusters like Monster Hunter Wilds and Grand Theft Auto VI expected to drive growth in the coming fiscal year.