Sony ups profit forecast after strong Q2

(Sharecast News) - Japanese electronics and entertainment giant Sony has lifted its full-year profit guidance after lowering its estimates for the impact of trade tariffs and raising its sales projections for gaming and music sales. Sony now expects to report a full-year operating income of JPY1.43trn, up JPY100bn from earlier guidance in August and above the JPY1.28trn earned last year, pencilling in a negative tariff impact of JPY50bn, down from its previous JPY70bn forecast.

Meanwhile, full-year sales are expected to total JPY12.0trn, more or less flat on last year but some JPY300bn ahead of earlier estimates after a stronger-than-expected second quarter.

The company reported a 5% increase in sales for continuing operations in the second quarter to JPY3.11trn ($20.2bn). Solid increases across the gaming, music and imaging/sensing solutions divisions was able to offset declines at Sony Pictures and the technology arms.

One particular area of strength was the success of its blockbuster 'Demon Slayer' anime movie, based on a popular manga series and distributed by Sony's streaming service Crunchyroll.

Group pre-tax profit surged 15% to JPY441.8bn, helped by an increase in the operating income margin to 13.8% from 13.1% last year.