Sony Group Corporation turned in a strong third quarter for 2024, riding high on gaming and music while its film unit faced headwinds. The tech and entertainment conglomerate posted consolidated revenue of JPY4.41 trillion ($28.6 billion), an 18% surge year-over-year, driven by robust gains in PlayStation sales and streaming music revenue.
Operating income landed at $3.05 billion, a modest 1% bump over the previous year. Net income attributable to Sony’s shareholders rose 3% to $2.43 billion, reflecting steady growth across key business segments.
The gaming and network services division proved to be Sony’s MVP, pulling in $10.92 billion, a 16% jump, on the back of strong PlayStation 5 sales and rising demand for third-party game software and network services. Operating income for the segment soared 37% to $767 million, reflecting higher revenue and improved profitability.
Meanwhile, Sony Music racked up $3.12 billion, marking a 14% lift thanks to higher streaming revenues in recorded music and publishing. Operating income climbed 28% to $632.5 million, driven by increased digital revenue and the consolidation of eplus Inc., a ticketing platform.
However, not all divisions were in the green. Sony Pictures Entertainment saw a 9% revenue increase to $2.58 billion, but its operating income slumped 18% to $220.8 million. Sony attributed the decline in operating income to higher marketing costs for theatrical releases and weaker licensing revenues for catalog titles.
During the earnings press conference, Hiroki Totoki, Sony’s incoming CEO, noted that the impact of the Hollywood strikes was also felt, leading to the postponement of major theatrical releases, including the next installments of the ‘Spider-Man’ and Jumanji franchises, to fiscal year 2027. Additionally, he stated that the wildfires in California had a minor impact on the company’s operations, though Sony continues to monitor the situation closely. Additionally, Totoki stated that production delays impacted the television division, though activity is now recovering.
Crunchyroll, Sony’s anime streaming platform, contributed to revenue growth, though the broader Pictures division’s increased marketing expenses and lower licensing revenues impacted overall profitability. The second season of ‘Solo Leveling,’ produced by Aniplex, has been a major hit in multiple territories, driving increased engagement on Crunchyroll. According to Totoki, Sony is also planning to expand Crunchyroll’s digital comic service, Crunchyroll Manga, to paid subscribers in North America. He also highlighted Sony’s strategic collaboration with Kadokawa, strengthening their partnership across anime, gaming, and publishing to create new entertainment value.
The Imaging & Sensing Solutions unit, which supplies camera sensors for smartphones, was essentially flat at $3.25 billion, with a slight dip in operating income to $632.8 million. Sales of image sensors for mobile devices took a hit due to lower unit shipments.
Sony’s Financial Services arm, typically a stable performer, recorded $4.66 billion in revenue—a dramatic 130% increase—yet its operating income tumbled 40% to ¥46.4 billion ($300.9 million), weighed down by insurance finance expenses.
Looking ahead, Sony revised its full-year outlook, now expecting $85.75 billion in revenue and $7.01 billion in net income attributable to shareholders, a 10% upgrade from prior estimates. The company also reaffirmed its commitment to rewarding investors, maintaining a projected dividend of JPY100 per share pre-split.