Sony Group Corporation (NYSE:SONY) Q3 2022 Earnings Call Transcript

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Looking ahead to next fiscal year, we have strong titles planned to be released for both first and third-party, including Marvel Spider-Man 2. The sales contribution of PC software is steady increasing, thanks to the rollout of our popular IP to PCs such as Marvel Spider-Man Miles Morales, which went on sale in November. As for bunch, pre-orders are steadily increasing for the Destiny 2 Lightfall expansion, which is scheduled to be released this month.

Unidentified Company Representative: On the 22nd of this month. PS VR2 will be released worldwide by maximizing next generation sensing functionality and the performance of PS5. We aim to provide a virtual reality experience like never before. In anticipation of the launch, we are preparing a lineup more than 30 titles, including Horizon Call of the Mountain, the latest title in our IP, and Gran Turismo 7, which will be upgradable to PS VR2 for free. In this way, we are seeing a steady results from the various measures, we have taken in terms of both hardware and software. And we believe that, we have created positive momentum to reaccelerate growth and the game business centered on the expansion of the penetration of PS5. Next is the music segment.

FY ’22 Q3 sales increased by 23% year-on-year to Â¥367.7 billion, mainly due to the impact of falling exchange rate and the increase in streaming sales. Operating income was Â¥63 billion and increase of about Â¥7.8 billion year-on-year. The contribution operating income from visual media and platform accounted for approximately 10% of the operating income of the segment for the quarter. There is no change from the previous fiscal year forecast. Streaming sales in the quarter continue to grow steadily with year-on-year increase of 33% of the recorded music and 60% of the music publishing 7% and 28% respectively on the U.S. dollar basis. In recorded music following the first half of the fiscal year dwelling, which we had many new albums hits by artists such as Harry Styles and Beyoncé, we continue to generate hits on with oblige of 38 songs in the Spotify’s Top 100 weekly global music rankings in the current quarters.

And among them the singer song like this SZA’s album SOS released on the December 9th, became a big hit remaining in the number one in the Billboard 200 for the consecutive seven weeks after the release in publishing, our affiliated song Lighters participated in all of the top five most streamed albums on Spotify in calendar year 2022. And we believe this part solidify Sony’s positions in the industry leader. Next is the picture segment. FY ’23 Q3 sales were 331.5 billion a significant decrease of 28% compared to the same quarter of the previous fiscal year, which benefited from the blockbuster release of a Spider-Man: No Way Home and U.S. Television Seinfeld. Operating income fell by significant Â¥123.9 billion to a Â¥25.4 billion, primarily due to the recording of the game from a transition club GNS games business in the same quarter of the previous fiscal year.

And the impact of the decreased inside sales. And FY ’22 forecasting sales are Â¥1.400 billion decrease of Â¥40 billion from the previous year. There is no change from the previous focus in operating incomes. Due to the fewer films, being released a result, mainly from the production delays blocked by the COVID-19 situations and box ops revenue in the U.S. calendar year was about 60% of the calendar year 2019. Next fiscal year Sony plans to release highly appealing films including the sequel of the Academy winning animation film of the Spider-Man: Across the Spider-Verse and the new film of Sony Picture Universal of Marvel characters following like Banham. And we also and crunchy longest paid members exceeded 10 million as the top of the — by the end of the next years.

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