Sony hikes annual net profit forecast after solid Q1

The yen's weakness against the dollar in recent months has boosted takings for the Japanese electronics and entertainment conglomerate.

In the April to June quarter, the company logged a six percent jump in net profit on-year to 231.6 billion yen ($1.6 billion), beating analyst estimates.

Sony now forecasts net profit of 980 billion yen in 2024-25, also a six-percent rise on-year.

It marks a jump from the previous estimate of 925 billion yen, which would have been lower than the 2023-24 result.

Music streaming services have been a money-spinner for Sony, which has an impressive back catalogue and whose current roster includes top artists such as Beyonce and Lil Nas X.

Yasuo Nakane of Mizuho Securities said before the earnings announcement that Sony could log a record high profit this year for its image sensors, which are used in iPhones.

Sony may also see record profits next year in the gaming sector under new leadership, he said in a recent note.

"Our near-term outlook includes expectations that platform business group CEO Hideaki Nishino will improve PlayStation 5 supply chain management, including procurement, inventory, and logistics," Nakane said.

Nishino is also expected to "maximise PS5 platform profits through a balancing of hardware, software and network operations," he said. "We believe that both are possible."

Sony has also abandoned its rumoured bid for US film and television giant Paramount Global, which has agreed a merger with production company Skydance, Japan's Nikkei business daily reported.