Sony Group(SONY)2023-08-08 16:00Financial Performance - For the three months ended June 30, 2023, total sales and financial services revenue increased by 32.9% to ¥2,963,652 million, compared to ¥2,229,760 million in the same period of 2022[11]. - Net income attributable to Sony Group Corporation's stockholders for the same period decreased by 16.7% to ¥217,545 million, down from ¥261,094 million in the prior year[11]. - Operating income for the three months ended June 30, 2023, was ¥253,042 million, a decrease of 30.7% from ¥364,865 million in the same period of 2022[11]. - The company reported a total comprehensive income of ¥445,459 million for the three months ended June 30, 2023, compared to ¥439,546 million for the same period in 2022, reflecting a slight increase of approximately 1.0%[16]. - The company declared dividends of ¥49,380 million for the three months ended June 30, 2023, compared to ¥43,295 million in the same period of 2022, representing an increase of approximately 14.5%[17]. - The net income for the three months ended June 30, 2023, was ¥217,942 million, compared to ¥261,204 million for the same period in 2022, indicating a decrease of about 16.5%[16]. - The company reported a significant increase in other financial services revenue, which rose to ¥536,359 million, up from ¥78,153 million, marking a growth of 586.5%[11]. Assets and Liabilities - The total assets as of June 30, 2023, reached ¥32,860,017 million, reflecting an increase of 5.5% from ¥31,154,095 million as of March 31, 2023[9]. - Current liabilities increased by 6.8% to ¥9,954,419 million as of June 30, 2023, compared to ¥9,318,409 million as of March 31, 2023[9]. - Sony's cash and cash equivalents increased by 3.5% to ¥1,532,099 million as of June 30, 2023, compared to ¥1,480,900 million as of March 31, 2023[8]. - The company’s equity attributable to Sony Group Corporation's stockholders increased by 6.1% to ¥7,002,988 million as of June 30, 2023, compared to ¥6,598,537 million as of March 31, 2023[9]. - Total current assets for Sony without Financial Services increased to ¥5,096,511 million as of June 30, 2023, up from ¥4,032,200 million as of April 1, 2022, representing a growth of approximately 26.4%[25]. - Long-term debt increased to ¥1,807,171, up from ¥1,767,696, indicating a growth of 2.2%[26]. - Total non-current liabilities amounted to ¥15,827,020, reflecting a growth of 4.3% year-over-year[26]. Segment Performance - Game & Network Services segment reported a revenue increase of ¥166,542 million, totaling ¥755,003 million in Q2 2023, up from ¥588,461 million in Q2 2022, a growth of 28.3%[22]. - Financial Services segment saw a significant revenue increase of ¥465,386 million, reaching ¥679,109 million in Q2 2023, compared to ¥213,723 million in Q2 2022, marking a growth of 218.5%[22]. - The Music segment's operating income increased by ¥12,407 million, totaling ¥73,380 million in Q2 2023, compared to ¥60,973 million in Q2 2022, reflecting a growth of 20.3%[20]. - The Pictures segment reported a decline in revenue of ¥21,069 million, totaling ¥320,178 million in Q2 2023, down from ¥341,247 million in Q2 2022, a decrease of 6.2%[22]. - The total operating income for the Financial Services segment decreased by ¥84,694 million, resulting in ¥54,514 million in Q2 2023, down from ¥139,208 million in Q2 2022, a decline of 60.8%[20]. Cash Flow and Investments - Cash flows from operating activities for the three months ended June 30, 2023, showed a net cash used of ¥12,669 million, a significant improvement from ¥430,018 million used in the same period of 2022[16]. - Payments for property, plant, and equipment and other intangible assets for the three months ended June 30, 2023, were ¥130,501 million, an increase from ¥106,968 million in the same period of 2022, reflecting a growth of approximately 22.0%[17]. - The net cash provided by financing activities for the three months ended June 30, 2023, was ¥213,867 million, a significant turnaround from the net cash used of ¥29,977 million in the same period of 2022[17]. - Cash and cash equivalents at the end of the period on June 30, 2023, were ¥1,532,099 million, up from ¥1,371,867 million at the end of the previous fiscal year, marking an increase of about 11.7%[17]. Future Outlook - The company anticipates continued growth in financial services revenue for the fiscal year ending March 31, 2024, driven by strong performance in insurance and other financial services[4]. - The forecast for consolidated sales for the fiscal year ending March 31, 2024, has been revised to ¥12,200 billion, an increase of ¥700 billion or 6.1% from the previous forecast[42]. - Financial Services revenue is forecasted to increase to ¥1,320 billion, primarily due to net gains on investments at Sony Life Insurance[48]. - The Pictures segment is expected to see lower sales due to strikes affecting theatrical releases, with sales forecasted at ¥1,470 billion[48]. - The company emphasizes that actual results may differ materially from forecasts due to various uncertainties[57].