By Kosaku Narioka

Sony Group raised its annual earnings projections after reporting a rise in third-quarter net profit thanks to the strength in its game and music businesses.

The Japanese entertainment and electronics company said Thursday that net profit increased 2.7% from a year earlier to 373.74 billion yen, equivalent to $2.42 billion, for the three months ended December. That beat the estimate of Y290.5 billion in a poll of analysts by data provider Visible Alpha.

Third-quarter revenue grew 18% to Y4.410 trillion.

For the year ending March, it now projects net profit to climb 11% to Y1.080 trillion and revenue to increase 1.4% to Y13.200 trillion. It previously projected Y980.00 billion in net profit and Y12.710 trillion in revenue.

Sony raised its full-year operating profit forecast for its game business to Y380.0 billion from Y355.0 billion projected earlier. It also increased its annual operating profit view for its music business, expecting Y340.0 billion instead of Y330.0 billion forecast previously.

Third-quarter operating profit from its game business rose 37% to Y118.06 billion. Operating profit from its music business climbed 28% to Y97.42 billion.

Last week, game rival Nintendo cut its annual projections for earnings and Switch console sales after posting weak nine-month results.

Sony Group has spent billions of dollars in acquisitions in recent years to boost its entertainment content. The company bought U.S. videogame maker Bungie in 2022 and animation-focused U.S. streaming service Crunchyroll in 2021.

Sony Group has named Chief Operating Officer Hiroki Totoki, who has led the company's entertainment content growth, as its new chief executive, effective April 1. Totoki has served as COO since April 2023 and chief financial officer since 2018.

In January, Sony Group acquired an additional stake in Japanese publishing house Kadokawa for more than $300 million. It now holds a 10% stake in Kadokawa, which publishes books and magazines and produces videogames, movies and animation.

Sony plans to spin off its insurance and online-banking unit and list the business this year to focus on its core entertainment businesses.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

February 13, 2025 02:23 ET (07:23 GMT)

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