TOKYO — Sony expects its highest-ever net profit for the year ending March as pandemic fueled demand boosts its key gaming business.
The company revised its outlook on Wednesday for the current fiscal year. Sony now forecasts net profit to jump 86% to 1.085 trillion yen ($10 billion), surpassing its record of 916 billion yen posted during the year ended March 2019.
The strong performance will be supported by a 7% jump in revenue to 8.8 trillion yen and an 11% increase in operating profit to 940 billion yen.
This marks Sony’s second upward revision this year. Previously, the company said it expected annual net profit to increase 37% to 800 billion yen.
The conglomerate’s subscription-based gaming services have become popular among gamers, especially PlayStation Plus, which pulls in monthly subscription revenue for its online multiplayer games. The ongoing pandemic has helped support the growth, as many people chose to stay home, fueling demand for games and other home entertainment.
The release of its latest console PlayStation 5 in November also boosted gaming sales. The rollout has led to an increase in marketing and other related expenses, but these have been offset by overall growth in the gaming business.
The smash-hit anime movie “Demon Slayer,” co-distributed by Sony’s music unit, also helped boost sales. The film was released in theaters across Japan in October and has become the country’s highest-grossing film ever.
Go to the news source: Sony rides game and anime businesses to record $10bn profit