Sony's Quarterly Profit Climbs 32% Despite Earthquake Uncertainty

Sony Group reported a 32% rise in net profit for its fiscal first quarter, reaching 342.2 billion yen ($2 billion), according to earnings released on Friday. The Tokyo-based entertainment and electronics conglomerate saw revenue increase 8% to 2.84 trillion yen ($17.7 billion) for the April–June period.

However, the company cautioned that results do not yet account for potential damage from the magnitude 7.1 earthquake that struck southwestern Japan's Kumamoto region on July 28. The quake caused at least 34 fatalities, disrupted factories, and halted transportation. Sony said its semiconductor facilities in the area were affected: one plant remains offline while others have resumed operations. No major structural harm was reported, but the financial toll is still being evaluated. Prior to the disaster, Sony had indicated it was on pace for a record annual profit.

The music segment delivered strong performances, driven by growth in digital streaming and publishing. Catalog sales of Michael Jackson albums like "Thriller" and "Bad," alongside newer releases from artists such as Ella Langley and Bad Bunny, contributed to the upbeat results.

Sony's imaging and sensor division also posted solid profit and revenue. In a related development, camera lens manufacturer Tamron disclosed that it had received an acquisition approach from Sony and is reviewing its options.

The games business recorded higher hardware sales, with 1.6 million PlayStation 5 consoles sold in the quarter, up from 1.5 million in the previous three months. Total PS5 lifetime sales now exceed 93 million units, while the number of active players stands at 125 million.

The film unit, by contrast, faced headwinds from a lighter release schedule compared to a year earlier. The quarter's primary theatrical release from Sony Pictures was "The Breadwinner," a comedy directed by Eric Appel. On the streaming front, anime service Crunchyroll continued to expand its subscriber base, and licensing fees from the television catalog provided an additional lift.

Looking ahead, Sony maintained its forecast for a full-year net profit of 1.2 trillion yen ($7.5 billion), a 17% increase over the prior year. Annual sales are expected to reach 12.5 trillion yen ($77.8 billion) by fiscal year-end March 2027, representing marginal growth of less than 1%. Following the earnings release, Sony Group stock closed little changed in Tokyo.