UPDATED: Second-quarter profits at Sony Pictures Entertainment slid to $124 million for the three months ended September 30, 2024. That’s a 39% decrease versus the similar quarter in 2023, on a U.S. dollar basis. Adjusted OIBDA (Operating Income Before Depreciation and Amortization) came in at $218 million (-26%). This is based on revenues that were down 14% compared to last year, landing at $2.385 billion.
Announcing results from Tokyo, Sony Corp said the drops were attributable to lower series deliveries in the Television Productions unit, in part due to production delays related to the Hollywood strikes in 2023. It also cited higher programming and marketing costs in the India business in Media Networks. On an earnings call, Sony said it expects recovery in the second half of this fiscal year, and the next fiscal year.
The above were the major drivers of decreases in the Pictures division, whereas revenues from theatrical releases were essentially on par with 2023’s second quarter ($455 million in 2024 vs $465 million in 2023). During the July-September period this year, Sony released five films theatrically, with one making significant impact – Wayfarer Studios’ It Ends with Us, which began rolling out in August, and has blossomed to $349.2 million global through this past Sunday. Japan is still to release.
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Versus last quarter, revenues and profits in the Pictures segment were up 10% and nearly 70%, respectively.
Venom: The Last Dance, which was released last month, was at $317 million worldwide through Sunday, though it will factor in next quarter’s report. Notably on deck through the rest of the year is Kraven the Hunter, which releases in December.
Overall, the news was better for the media and electronics conglomerate as a whole, with revenues of $19 billion (2,905.6 trillion yen), a 3% increase on last year’s same quarter. Operating income was up 73% to $2.98 billion (455.1 billion yen). Net profits rose 69%. Reasons for the hikes were significant increases in Games and Network Services, Financial Services and Music.
In Games & Networks, the number of monthly active users on the PlayStation Network grew 8% versus last year, to 116 million. Operating income was up 184% year-on-year to $909 million and the full-year forecast has been increased by 11% to $2.33 billion. This would represent a record high.
The Music segment recorded a 12% profit jump, to $592.1 million. The full-year forecast remains unchanged at $2.16 billion.
The full-year operating income forecast for the company was revised upwards by 1% to $8.6 billion, while the Pictures division was revised downward, also by 1%, to $753 million.