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(Sharecast News) - Media and entertainment giant Sony said it expects annual sales to fall this year following a record 12 months for the Japanese firm, while profits in the fourth quarter dropped sharply.
Revenue for the year ended 31 March increased 4% year-on-year to JPY12.48trn, while operating profit climbed 13% to a record JPY1.45trn, driven by strong performances in gaming, music and image sensors.
The PlayStation business remained a key earnings driver, with Game & Network Services operating profit rising 12% to JPY463.3bn, despite softer PS5 hardware demand. Monthly active users on the PlayStation platform hit a record 125m accounts.
However, operating profits in the fourth quarter fell 24% to JPY163.5bn, with net profits down 63% at JPY83.12bn, well below the JPY202.24bn market forecast, held back by a JPY45bn loss on its investment in its Honda electric vehicle venture, which was discontinued. Meanwhile, gaming profits also sank as PS5 sales fell.
Overall company sales rose 8% year-on-year in the fourth quarter to JPY2.80trn.
Looking ahead, the firm guided to sales falling 1% to around JPY12.3trn, though net profits are expected to rise 13% to 1.16trn.
The company also announced a new share buyback programme worth JPY500bn for the next year.
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