On Tuesday, Sony reported its earnings results for its fiscal fourth quarter. The company reported that operating profit for the quarter went through the roof more than doubling to 138.6 billion yen (or $1.06 billion). According to the company, the gains it experienced in the quarter were due to strong performance from its gaming and network services businesses.
The company also added that it gained from increased demand for its PlayStation 5 games console. The company is using this to push downloads of online games and encourage people to sign up for its subscription service. The company sold 11.5 million units last business year and has shipped close to 20 million units since launching it in 2020. All these it achieved despite the ongoing shortage in semiconductor chips and other production challenges.
Sony is expanding its software business. Back in February, it announced the acquisition of Bungle Inc. for $3.6 billion. Bungle Inc. is the creator of the Halo video game.
For the fiscal fourth quarter ended March 31st, Sony’s operating profit of 138.6 billion yen surpassed the 66.5 billion yen recorded in the same period a year ago. However, it fell below the expectations of analysts, according to Refinitiv. Analysts had forecasted profit for the quarter to come in at 147 billion yen.
The company added that its full business year earnings received a boost from the success of the “Spider-Man: No way Home” movie recorded under movie unit profit.
The company also issued guidance for the current quarter. It expects operating profit to come in between 1.16 trillion yen to 1.2 trillion yen. This is below the estimates of analysts, according to data from Refinitiv. Analysts forecast operating profit for the fiscal first quarter to come in at 1.21 trillion yen.