Sony (SONY.US) announced on Tuesday that profits for fiscal year 2023 fell 7%, dragged down by a decline in financial services sector performance.
The Zhitong Finance App learned that Sony (SONY.US) announced on Tuesday that profits for fiscal year 2023 fell 7% due to the decline in financial services sector performance. Sony's flagship console, the PlayStation 5, also sold slightly below the guideline throughout the year.
According to the data, Sony's revenue for the March quarter was 3.5 trillion yen (22.4 billion US dollars), an increase of 14% over the previous year, and is expected to be 2.89 trillion yen. Operating profit was 229.4 billion yen, up 57% year over year, and is expected to be 236.81 billion yen.
The Japanese gaming giant reported revenue of 13 trillion yen in 2023, up 19% year over year. However, operating profit for the year was 1.2 trillion yen, down 7% year over year.
Sony failed to meet the lowered PlayStation 5 sales target. The company said its flagship console sold a total of 20.8 million units in fiscal year 2023.
This figure is slightly below Sony's revised target of 21 million units in February of this year. Prior to that, the company had predicted that its PS5 console would sell 25 million units throughout the year.
Sony said its financial services business was the main reason for the decline in profits.
The financial services sector's operating profit in 2023 was 173.6 billion yen, down 22.5% year on year, and the sector experienced strong growth in 2022.
The imaging and sensing solutions (I&SS) business, which includes image processing chips, has also declined.
Sony's I&SS business operating profit was 193.5 billion yen, down 9% from 2022.
Sony expects the Group's overall revenue to decline this fiscal year. The company expects revenue to reach 12.3 trillion yen in the 2024 fiscal year ending March 2025, down 5% from the previous year.
Sony also expects operating profit for the 2024 fiscal year to reach 1.28 trillion yen, an increase of 5%.