By Kosaku Narioka
Sony Group reported higher quarterly earnings, supported by its music and movie businesses, but said it expects a drop in net profit for the current fiscal year due partly to the impact of U.S. tariffs.
The Japanese electronics and entertainment company said Wednesday that net profit rose 4.6% from a year earlier to 197.73 billion yen, equivalent to $1.34 billion, for the three months ended March. That beat the estimate of Y153.6 billion in a poll of analysts by data provider Visible Alpha.
Investors cheered the results, sending Sony's shares more than 4% higher in Tokyo afternoon trading. The company also said it will buy back up to Y250.0 billion of its own shares over the next year.
For the year that began in April, it projected that net profit will fall 13% to Y930.00 billion and revenue will decline 2.9% to Y11.700 trillion.
Sony said it expects U.S. tariffs to lower fiscal-year operating profit by Y100.0 billion.
Fourth-quarter revenue dropped 24% to Y2.630 trillion. Operating profit increased for its music and movie businesses but fell for its game business.
Sony has spent billions on acquisitions to boost its entertainment content. The company bought U.S. videogame maker Bungie in 2022 and anime-focused U.S. streaming service Crunchyroll in 2021.
In January, Sony acquired an additional stake in major Japanese publishing house Kadokawa for more than $300 million. It said it would explore initiatives such as making live-action films and television dramas using intellectual property from Kadokawa.
Sony Chief Executive Hiroki Totoki, who assumed the role in April, said earlier this year that the company trails top global players in many aspects, such as size and earnings, adding that there is room for improvement if it is to become a truly global organization.
Sony's stock has trended higher over the past year, driven by hopes for success as it focuses on its games and entertainment businesses. However, fears about U.S. tariffs have weighed on sentiment recently.
Rival videogame maker Nintendo forecast higher annual profit last week, counting on a boost from sales of the long-awaited Switch 2 console, which is set to hit the market next month. It expects to sell 15.0 million Switch 2s this fiscal year.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
May 14, 2025 00:47 ET (04:47 GMT)
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