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TOKYO – Sony is expected to record record operating profit for the six months ended Sept. 30, with the switch to a subscription model in areas such as gaming and music, helping to generate stable revenue .
The profit of the Japanese company seems to have increased by more than 10% in one year, to about 420 billion yen ($ 3.75 billion), a second consecutive record since an intermediate semester.
The substantial gains herald the continuation of a remarkable recovery at the Walkman's home, which was still bleeding a few years ago. Sony should update its guidance for the full year to the release of its half-year results, which could reverse current expectations of lower operating earnings. Annual earnings growth would add to the near duplication of last year's net earnings.
Unit sales of the PlayStation 4 gaming console, which debuted almost five years ago, are expected to drop 11% for the full year until March 2019. Yet , the number of PlayStation Plus subscribers has increased by 45% a year in Japan. Subscribers reached around 34 million at the end of June, up almost 30% compared to March 2017.
The profits of the games segment continue to grow, driven by the release of popular titles such as "Marvel's Spider-Man" and the latest installment of the "God of War" series from mid-April to September.
In the music business, the Spotify streaming service, in which Sony holds a stake through a subsidiary, has also gained users. Sales were also strong for smartphone gaming applications.
The production of Sony image sensors used in the new Apple iPhone has started from July to September, which has raised the semiconductor segment. The addition of second cameras by smartphone manufacturers, especially in China, has resulted in a steady growth in the sales volume of image sensors.
Sony focusing on high-end models, TVs and digital cameras have sold well.
Meanwhile, the mobile communications segment continues to struggle with poor sales. After operating loss of 10.7 billion yen in the quarter from April to June, the smartphone sector is expected to record an even larger loss for the quarter ending in September.
Sony expects a 9% decline in its operating profit to 670 billion yen for the current fiscal year. The revised forecast may exceed the record profit of 734.8 billion yen last year.
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