Japanese electronics and entertainment group, Sony Group Corp. revealed JPY2.31 trillion of revenue in the three months between April and June, representing the first quarter of its financial year. Group profits JPY218 billion in the quarter were. These were modest increases of 2% and 3% respectively in local currency terms.
The results were significantly affected by currency movements, notably the strength of the US dollar as the Federal Reserve uses interest rates to slow inflation, and the record weakness of the Japanese Yen, where a contrasting macro-economic strategy is being applied.
The ‘Pictures Division’ which encompasses feature film, TV networks and television production operations, recorded $2.64 billion of revenue and $394 million of operating profits. These number compared with the April-June 2021 period when COVID restrictions were still largely hampering the theatrical industry and the Pictures Division enjoyed revenues of $1.87 billion and operating profits of $232 million.
Earlier in July, Sony completed the acquisition of Bungie Inc., a U.S. video game developer. It confirmed that the purchase cost $3.7 billion, including working capital adjustments, the purchase price and employee incentives. Bungie’s anticipated impact on group finances is included as part of the updated guidance that accompanied Sony Group’s latest results statement.
The results were announced Friday shortly after the end of trading on the Tokyo Stock Exchange and before the daily opening of the New York Stock Exchange. Sony shares closed at JPY11,690 in Tokyo, down roughly 22% since the beginning of 2022. In New York, its ADR shares closed Thursday at $87.56 apiece.
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