Sony Pictures’ Q2 Profit Dips To $202M; Full-Year Forecast Increases

Sony Pictures Entertainment recorded $202 million in operating profit for the three months ended September 30, repping a 30% slide from the comparable period last year (-13% on a yen basis). The company said Q2 profits were affected by the absence of new films licensed to digital streaming services and an increase in marketing costs to support current year theatrical releases.

Similar to the same 2021 frame, revenues in the division were up, however, reaching $2.44 billion (337.5 billion yen). On a dollar basis, that’s a 3% increase while it’s +29% when considering the yen. Numbers have been greatly impacted by exchange rate fluctuations amid a strong dollar and a weak yen.

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'Where The Crawdads Sing' Hits High Note At Domestic Box Office With $90M

SPE had a more significant roster of movies in cinemas during the past quarter versus Q2 2021, including sleeper hit Where the Crawdads Sing which has grossed $132 million globally, Brad Pitt-starrer Bullet Train ($233 million worldwide) and critically acclaimed historic action drama The Woman King ($44 million).

Higher television licensing and home entertainment revenues also kicked in for movies released in fiscal year 2021 while Sony cited higher revenues for anime streaming services including the impact of the acquisition of Crunchyroll. The latter released Dragon Ball Super: Super Hero domestically in August, grossing $38.1 million.

Currently in release theatrically, Sony has family pic Lyle, Lyle Crocodile which has made over $50 million globally to date. On deck through the rest of the year are war drama Devotion starring Jonathan Majors and Top Gun: Maverick’s Glen Powell, and Tom Hanks-starrer A Man Called Otto at Christmastime. 

Sony has increased its full-year outlook for SPE, eyeing 115 billion yen ($778 million). Overall, the media and electronics giant increased forecasts, primarily due to the weakness of the yen.

Sony Corporation reported group revenues of 2.752 trillion yen ($18.6 billion), to best analyst predictions, and an 8% hike in operating profits to 344 billion yen ($2.33 billion) for the quarter. From Tokyo this morning, Sony cited increases in Music, Imaging & Sensing Solutions and Financial Services but also noting a significant decrease in Games & Network Services. 

The latter saw a 49% drop in operating income, down to 42.1 billion yen ($284.5 million). The corporation cited as culprits increased costs for software development, expenses associated with acquisitions (including Bungie), the negative impact of foreign exchange rates and a decrease in sales of non-first-party titles including add-on content.

The division sold 3.3 million units of its PlayStation 5 console in the quarter, on par with 2021’s same frame, and counts 45.4 million PlayStation Plus subscribers, a slight drop from the previous quarter. Coming up on November 9 is the official release of God of War Ragnarok.

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