Sony Group Corp. announced on Friday that its net profit for the fiscal year ending in March declined by 3.4 percent to 1.03 trillion yen (approximately $6.57 billion).

The decrease was partly influenced by the company’s recent decision to scale down its joint venture operations with Honda Motor Co. Despite this decline, the company projected a record-high profit for the current fiscal year, News.Az reports, citing Kyodo.

The Japanese entertainment conglomerate reported that operating profit rose by 13.4 percent to 1.45 trillion yen in fiscal 2025 compared to the previous year.

This growth was supported by strong performance in its music division, where revenues increased significantly due to robust streaming service demand. Overall sales for the year also rose by 3.7 percent, reaching 12.48 trillion yen.

Looking ahead to fiscal 2026, Sony expects net profit to increase by 12.5 percent to 1.16 trillion yen. The company also forecasts operating profit to rise by 10.5 percent, reaching 1.60 trillion yen. However, sales are projected to slightly decline by 1.4 percent to 12.30 trillion yen.

These financial results were released after Sony and Honda announced in April that they would scale down operations of their joint venture established in 2022. The venture had originally aimed to develop and market electric vehicles. Honda has been reassessing its broader electrification strategy due to weakening demand for electric vehicles in several global markets.

As a result of discontinuing its EV marketing plans, Sony recorded a loss of 44.9 billion yen.

Meanwhile, the company’s imaging and sensing solutions division achieved record-high operating profit during the fiscal year. This performance was driven by strong demand for image sensors used in smartphones, which contributed to higher sales in the segment.

Although Sony had posted a record net profit of 1.14 trillion yen in fiscal 2024, the company stated that fiscal 2025 was affected by impairment losses linked to U.S.-based gaming company and subsidiary Bungie Inc., among other factors. Nevertheless, Sony emphasized that its overall business performance remained solid despite these challenges.

News.Az 

By Nijat Babayev