On Thursday, Sony Group Corp., after taking full control of its financial business three years ago, announced that it is considering a partial spin-off of its financial sector. As there is an increase in investment by the corporation in image sensor, and entertainment.
To spin off Sony Financial Group, Sony Group Corp. is considering a period of two to three years. They have the intention to keep a little under 20% of the stakes and list the company. The Sony Financial Group’s operations include banking and insurance.
Hiroki Totoki, Sony’s Chief Financial Officer, told a strategy briefing that, according to the funds the business requires, “it is a challenge to balance this with our investment in other growth areas such as entertainment and image sensors.”
The company is trying to find synergies between their business areas, which also include music, video games, and movies. According to the report, “The Last of Us,” a drama that was broadcast on the HBO television network, helped promote the game franchise and the music used in it, and the show is based on the game.
According to the Sony Group, there were changes in tax rules that made possible a partial spin-off of Sony Financial, which could help retain the Sony branding of the newly listed business.
An analyst at LightStream Research who publishes on Smartkarma, Mio Kato, said, “It doesn’t change anything drastically in terms of the outlook for Sony but it does make it a more pure play entertainment company which the market generally likes.”
The operating profit was increased by 49%, which is up to 223.9 billion yen, assisted by the one-time gain from a real estate sale. Where the finance business saw a 5% decline in revenue in the year ended March.
Sony anticipates a 20% decline in the profit due to a lack of one-off profits from the prior year, and due to accounting changes, Sony anticipates a 40% decline in the revenue at the unit in the current financial year.
In the Tokyo trade, the Sony share was hiked by 6% after the corporation announced it would buy 2.03% of its stock.
Games and Characters
As the supply chain congestion is relaxed, the corporation has anticipated selling 25 million PlayStation 5 consoles this financial year, and this could be the record for the PlayStation device. The group has also anticipated a decline in first-party software due to the weak gaming pipeline.
One of the games that will be released this year will be a sequel to Sony’s hit “Marvel’s Spider-Man.”
With a switch console install base of over 125 million units, the rival of Sony, Nintendo Co. Ltd., sold over 10 million copies of “The Legend of Zelda: Tears of the Kingdom,” which was achieved in the first three days from launch. But they have the monster hit on the board, which is “The Super Mario Bros. Movie.”
He used to play “Super Mario,” and he has watched the movie recently in Tokyo, said Kenichiro Yoshida, Sony CEO.
He said, “Loveable characters and intellectual property (IP) can live for 30, 50 or 100 years.” Yoshida said, “That’s something we want to make investment in for sustainable growth.”
