Sony's Mixed Bag: Profits Dip but Full-Year Forecast Gets a Boost

Sony Pictures Entertainment saw a drop in profits for the second quarter of 2024. Revenues were $2. 3 billion, which is a small decrease of 2% compared to the same time last year. Profits fell by 25% to $93 million, and adjusted OIBDA was down 16% at $183 million. The main reason for this drop is that last year's second quarter included the hit movie "It Ends with Us. " However, the release of "Demon Slayer: Kimetsu no Yaiba Infinity Castle" helped offset some of these losses. This movie, distributed by Crunchyroll and Sony, was shown in 62 international markets outside of Japan and select Asian hubs. It opened in North America on September 12 and has made over $347 million worldwide so far, with $312 million of that coming in during Q2. The success of "Demon Slayer" also boosted Sony's Music segment. Sales in this area rose by 21% to 542. 4 billion yen ($3. 5 billion), and operating income increased by 28% to 115. 4 billion yen ($748 million). This growth is thanks to the popularity of "Demon Slayer" and higher streaming revenue in recorded music and publishing. Sony Music owns Aniplex, which produces the "Demon Slayer" movies and other anime content. Overall, Sony Corp reported a 5% increase in revenues for the quarter, reaching 3. 108 trillion yen ($20. 1 billion). Operating income rose by 10% to 429 billion yen ($2. 8 billion). Looking ahead, Sony has raised its full-year forecast for revenues by 3% to 12 trillion yen ($77. 8 billion) and its operating profit projection by 8% to 1. 43 trillion yen ($9. 27 billion). This increase is partly due to expected growth in music and a decrease in the impact of U. S. tariffs. The full-year operating income forecast for the Pictures division remains unchanged from August at 125 billion yen ($810 million), while Music profits are now expected to reach 385 billion yen ($2. 5 billion).