Global Market: Sony Q1 profit jumps 32%, earthquake impact yet to be assessed

Sony Group posted a 32% rise in fiscal first-quarter profit, driven by strong performances in its music, gaming, and imaging businesses, while cautioning that it is still evaluating the financial impact of the powerful earthquake that struck Japan's Kumamoto region earlier this week, Reuters reported.

The Japanese entertainment and technology giant said its semiconductor facilities in Kumamoto were affected by the earthquake. While operations have resumed at most plants, production remains suspended at one facility. Sony said there was no significant physical damage, but the financial implications of the disruption have not yet been included in its quarterly results, according to Reuters.

Profit rises on strong entertainment and gaming performance

Sony reported net profit of 342.2 billion yen ($2 billion) for the April-June quarter, up from 259 billion yen a year earlier. Revenue increased 8% year-on-year to 2.84 trillion yen ($17.7 billion).

Before the earthquake, Sony had indicated it was on track to deliver a record annual profit. The company said it continues to assess whether the production disruptions will affect that outlook.

Earthquake disrupts chip production
The magnitude 7.1 earthquake that struck Kumamoto on July 28 caused widespread damage across Japan's southwestern island of Kyushu. The disaster claimed at least 34 lives, disrupted factory operations, damaged infrastructure, left hundreds of homes without electricity and halted rail services.

Sony said the semiconductor operations affected by the quake are an important part of its imaging sensor business, although it emphasised that there was no major structural damage to its facilities.

Music division delivers another strong quarter
Sony's music business remained one of its strongest performers, supported by growth in digital streaming and music publishing.

The company highlighted continued global demand for classic albums by Michael Jackson, including Thriller and Bad, alongside strong performances from newer artists such as Ella Langley and Bad Bunny.

PlayStation sales remain resilient
Sony's gaming division also delivered solid results during the quarter.

The company sold 1.6 million PlayStation 5 consoles during the April-June period, up from 1.5 million units in the previous quarter. Cumulative PS5 sales have now surpassed an estimated 93 million units, while the platform's active user base reached 125 million players.

Imaging business stays strong as Tamron reviews proposal

Sony's imaging and sensor business posted healthy sales and profits during the quarter.

Separately, camera lens manufacturer Tamron disclosed earlier this week that it had received an acquisition proposal from Sony and was evaluating its strategic options.

Film business lags but Crunchyroll gains subscribers
Sony's Pictures division underperformed compared with the same quarter last year, mainly because it released fewer theatrical films.

Its primary release during the quarter was The Breadwinner, directed by Eric Appel. However, the company said growth in subscribers to anime streaming platform Crunchyroll and higher licensing revenue from its television catalogue helped support overall media earnings.

Full-year outlook maintained
Sony maintained its forecast for the fiscal year ending March 2027, projecting net profit of 1.2 trillion yen ($7.5 billion), representing a 17% increase from the previous year.

The company also expects annual revenue of 12.5 trillion yen ($77.8 billion), broadly unchanged from the prior fiscal year.

Following the earnings announcement, Sony shares traded little changed in Tokyo as investors weighed the company's strong quarterly performance against the uncertainty surrounding the potential financial impact of the Kumamoto earthquake, Reuters reported.