Quantcast

SONY'S SOLID SUMMER: A Q2 TO REMEMBER

Record revenue from streaming at Sony Music last summer was so robust that the company has adjusted its guidance upward for fiscal 2020 to around $8b. And it’s not just income that’s rising; Sony Music’s profits were up a whopping 41% in the quarter as well.

Guidance for the division, which includes the Visual Media & Platform gaming unit in Japan, sits nearly 8% higher than the previous projection, while the forecast for annual operating profit is up 17% to nearly $1.4b.

Sony’s Recorded Music operation pulled in $1.16b in the quarter, up 11.2% over fiscal Q2 2019, with the period that ended 9/30 its best three-month-reporting span on record. Streaming brought in $742.3m, up 19% over 2019, and physical sales were up 31% to $248m, owing partially to big sellers in Japan. Recorded Music’s operating income hit $498m in the quarter, pushing the operating margin to 23%.

On a conference call, CFO Hiroki Totoki said advertising-supported streaming, which was negatively impacted by COVID-19, is recovering. “Primarily because streaming revenue in Recorded Music is exceeding our expectations, fiscal year '20 sales are expected to increase ¥60 billion [$575m] compared to our previous forecast to ¥850 billion, and operating income is expected to increase ¥22 billion to ¥152 billion [$1.46b]," he noted.

Music-publishing revenue was flat from last year at $353.7m despite a pandemic-related reduction in licensing, syncs and live performances.

Big sellers included music from Harry Styles, Travis Scott, Doja Cat, Luke Combs and Bob Dylan.

Sony said the projection shift is “due to an expected increase in streaming revenues in Recorded Music in addition to the expected strong performance of game applications for mobile devices and an expected increase in anime business sales in Visual Media & Platform.”

BHM PREVIEW: THE RHYTHM OF CULTURE, THE BLUES OF HISTORY
Let's start with a little lesson. (1/27a)
GLASS ANIMALS' NEVER-ENDING WAVE
British band's long and winding road to #1 (1/27a)
HITS EXEC TODD HENSLEY PROMOTED TO COO IN LIEU
OF RAISE
Want fries with that cow patty? (1/26a)
JNR CHOI'S ROCKET "TO THE MOON"
Buzzing newcomer is part of our latest New & Developing Artists class. (1/27a)
ROY RIFKIND,
1927-2022
Remembering an indie-label pioneer (1/26a)
OOH, LAS VEGAS
You're gonna make a poor boy outta me.
HOW I WISH THAT THERE WERE MORE
...than 24 hours in a day.
PALMS SWEAT, BLACKJACK
on a Saturday night
SIN CITY
Lamborginis and caviar Dry martinis, Shangri-La
 Email

 First Name

 Last Name

 Company

 Country
CAPTCHA code
Captcha: (type the characters above)