Sony Group(SONY) ZACKS·2025-05-14 14:01Core Viewpoint - Sony Group Corporation reported a mixed performance for the fourth quarter of fiscal 2024, with net income per share increasing but total revenues declining significantly due to weak sales in several segments [1][2]. Financial Performance - The net income per share on a GAAP basis was ¥32.63 (21 cents), up from ¥30.72 in the same quarter last year, exceeding the Zacks Consensus Estimate of 12 cents [1]. - Adjusted net income rose to ¥197.7 billion from ¥189 billion year-over-year [1]. - Total revenues fell 24% year-over-year to ¥2,630.2 billion (20 billion [2]. Segmental Results - Game & Network Services (G&NS) sales decreased by 4.2% year-over-year to ¥1,051.3 billion, with operating income dropping to ¥92.7 billion from ¥106 billion [3]. - Music sales increased by 9.5% year-over-year to ¥470.7 billion, driven by higher streaming revenues, with operating income rising to ¥83.6 billion from ¥71.2 billion [4]. - Pictures sales grew by 1.9% year-over-year to ¥414.6 billion, with operating income increasing to ¥53.5 billion from ¥30.7 billion [5]. - Imaging & Sensing Solutions (I&SS) sales rose by 2.6% year-over-year to ¥409 billion, with operating income slightly decreasing to ¥34.5 billion from ¥34.7 billion [6]. - Entertainment, Technology & Services (ET&S) sales fell by 9% year-over-year to ¥484.1 billion, resulting in an operating loss of ¥20.4 billion compared to a loss of ¥6.4 billion in the prior year [7]. - Financial Services reported losses of ¥172.4 billion, with operating loss totaling ¥11.6 billion against income of ¥26.1 billion in the year-ago quarter [8]. - All Other sales increased by 17.5% to ¥25.6 billion, with an operating loss of ¥9.8 billion compared to a loss of ¥5.5 billion in the prior year [9]. Cost and Cash Flow - Total costs and expenses were ¥2,423.9 billion, down 25.5% year-over-year, while operating income fell by 11.2% to ¥203.6 billion [11]. - For the 12 months ending March 31, 2025, Sony generated ¥2,321.7 billion in cash from operating activities, up from ¥1,373.2 billion in the prior year [12]. Fiscal 2025 Outlook - Sony expects sales for fiscal year ending March 31, 2026, to be ¥11,700 billion, a decrease of 3% year-over-year, primarily due to slowdowns in G&NS and ET&S segments [13]. - The company estimates operating income of ¥1,280 billion, down from ¥1,380 billion without tariff impacts, and net income is projected to be ¥930 billion, down 13% year-over-year [14].