Sony jumped to its highest in more than a decade after raising its outlook for the current fiscal year, thanks to robust sales of the PlayStation 4 console and profits from its stake in recently listed Spotify.
Shares rose as much as 5.4pc in early Tokyo trading, heading for their highest close since 2008, after the company lifted its full-year net income and revenue forecasts and also sharply beat operating profit estimates for the June quarter.
“Sony secured a big beat on all fronts,” said Jefferies Group analyst Atul Goyal. “The Games segment had a spectacular quarter with ‘God of War’ success. We don’t think it can beat this quarter anytime soon. But, with more first party games, we expect this will remain a big driver.”
Net income will be 500bn yen (€3.85bn) on sales of 8.6trn yen through next March, the Tokyo-based company said. The prior forecast called for 480bn yen and 8.3trn yen.
Sony cited higher-than-anticipated game sales for the revenue revision, while the recent market debut of the music-streaming service added cash to the bottom line. The company also reported a strong June quarter, with operating profit of 195bn yen sharply exceeding average projections for 145.4bn yen. That should come as a relief to investors, who were caught flat-footed in April when new CEO Kenichiro Yoshida unveiled a pessimistic forecast.
PlayStation revenue jumped 36pc and operating profit nearly quintupled, riding stronger-than-expected sales of new games. More titles were also sold digitally which generates higher profit margins. (Bloomberg)