PlayStation parent Sony Group (NYSE: SONY) stock gained on Thursday after it reported its fiscal first-quarter 2025 results.
The company reported a quarterly consolidated sales growth of 2% year-on-year to $18.13 billion (2.62 trillion Japanese yen).
EPS of 30 cents (42.84 yen) beat the analyst consensus estimate of 23 cents.
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Game & Network Services (G&NS) revenue increased 8% to 936.5 billion yen, and operating income rose 127% to 148.0 billion yen.
Music revenue rose 5% to 465.3 billion yen, and operating income increased by 8% to 92.8 billion yen.
Pictures revenue decreased by 3% to 327.1 billion yen. Operating income improved by 65% to 18.7 billion yen.
Entertainment, Technology & Services (ET&S) revenue declined by 11% to 534.3 billion yen, and operating income decreased 33% to 43.1 billion yen.
Imaging & Sensing Solutions revenue (I&SS) rose 15% to 408.2 billion yen, and operating income increased 48% to 54.3 billion yen.
Consolidated operating income rose 36% to 340 billion yen. The net income grew 23% to 259 billion yen.
Sony sold 2.5 million PS5 units in the quarter, compared to 2.4 million a year ago and 2.8 million in the preceding quarter.
It held 1.6 trillion yen in cash and equivalents as of the end of June.
Outlook
Sony reiterated fiscal 2025 sales of $81.8 billion or 11.7 trillion yen, versus the 12.2 trillion yen analyst consensus estimate. It expects an operating income of 1.33 trillion yen (prior 1.28 trillion yen) after tariff impact, citing expectations of a minor impact from U.S. President Donald Trump’s trade war.
The company expects EPS of $6.78 (prior $6.50). It expects higher game business profits, driven by network services sales and favorable exchange rates.
The stock is up 18% year-to-date, reflecting its transformation as an entertainment giant spanning games, movies, and music as well as a leading maker of image sensors for smartphones.
Sony is also preparing to reduce its stake in its financial unit to below 20% by partially spinning off the business, which will list in Tokyo on September 29.
Price Action: SONY stock is trading higher by 4.45% to $26.03 premarket at last check Thursday.
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