Sony Q4 profit doubles, helped by gaming, movies and other content

The Sony logo is seen on a building in the Manhattan borough of New York City, New York, U.S., Jan. 16, 2019. REUTERS/Carlo Allegri

Sony Corp (6758.T) on Wednesday posted fourth-quarter operating profit of 66.5 billion yen ($610.8 million), compared with 35.4 billion yen a year earlier, helped by demand for gaming, movies and other content during the COVID-19 pandemic.

The result for the three months to March 31 compared with the 76.1 billion yen average profit from five analyst estimates compiled by Refinitiv.

The company has benefited from strong demand for its PlayStation 5 games console, games, movies and other content as people stayed at home.

Launched in core markets in November, Sony wants to use the games console to encourage online game downloads and sign-ups for subscription services.

As it focuses more on movies, games and other content the company is streamlining its consumer electronic business, with plans to close a factory in Malaysia which manufactures home audio equipment, headphones and other products.

To beef up its entertainment content and distribution business, Sony in December said it had agreed to buy AT&T Inc’s (T.N) animation business Crunchyroll, giving it 3 million new subscribers across 200 countries.

Sony this month said it had reached a deal with Walt Disney Co (DIS.N) to offer “Spider-Man” movies and other films on the latter’s streaming service after also signing an agreement with Netflix Inc (NFLX.O) to stream its movies. read more

Sony forecast profit to fall 4.3% to 930 billion yen this business year, versus the 976.4 billion yen average of 19 analyst estimates, Refinitiv data showed.

($1 = 108.8700 yen)

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