Sony Group raised its profit outlook after its lucrative content holdings generated continued growth, underscoring the entertainment group¡¯s resilience in the face of rising component prices.
The company now expects annual operating profit of ?1.72 trillion ($10.7 billion), surpassing the average analyst estimate and up from its initial forecast of ?1.6 trillion. June-quarter operating profit surged by 40% to ?476.5 billion, well above analyst expectations that had congregated around moderate growth.
Across its various divisions, Sony noted the tailwind of a weaker yen helping its results. The company also said the refund of U.S. tariffs imposed last year is helping its games division and is key to its higher earnings expectations. Consoles like the PlayStation 5 were especially vulnerable to the series of tariffs initiated by the administration of U.S. President Donald Trump starting with Liberation Day last April.
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