Sony Group’s stock rose by up to 10.7% on Friday after the company raised its earnings forecast for the current financial year, which ends in March 2025.
The Japanese tech and entertainment company now expects an operating profit of 1.34 trillion yen ($87.6 billion), a 2% increase from last year. It also raised its full-year sales forecast to 13.2 trillion yen, a 4% increase, driven by stronger performances in gaming and music during the third quarter.
For the December quarter, Sony’s operating income reached 469.3 billion yen, up 1% from the same period last year.
The company is well-known for its consumer electronics like the Walkman but has expanded to movies, music, and gaming consoles, including the popular PlayStation.
Gaming Business Drives Growth
Sony’s gaming division saw a 37% increase in operating profit in the third quarter. This was mainly due to higher sales in network services, hardware, and third-party software.
In the December quarter alone, Sony sold 9.5 million PlayStation 5 consoles, up from 8.2 million during the same period last year. This brings total PS5 sales to 74.9 million units.
Sony also reported that the number of monthly active users across PlayStation platforms reached 129 million in December, a 5% increase from the previous year. The total playtime on PlayStation also grew by 2%, marking the seventh consecutive quarter of growth.
Outlook for Future Growth
Analysts believe Sony’s stock has room to grow. Macquarie Capital’s Damian Thong pointed out that Sony has been undervalued compared to peers like Nintendo.
He is particularly optimistic about the future of Sony’s gaming business, with several major game launches and cost cuts expected to drive further growth in the next fiscal year.
