Sony: The Net Income of the Consolidated Financial Statements for the Fiscal Year
Sony became the representative of “Ming” in the electronics industry because the light and dark of corporate performance was greatly divided by the covid 19. The net income of the consolidated financial statements for the fiscal year ended March 2021 (US GAAP) doubled from the previous fiscal year to 1,171.7 billion yen, which was the first time it was on the 1 trillion yen. In addition to the strong performance of the game business, the big hit of “Theatrical version” Kimetsu no Yaiba “” jointly distributed with Toho boosted profits.
Sales were 8,999.3 billion yen (up 9% year-on-year) and operating income was 971.8 billion yen (up 15% year-on-year). Sales, operating income, and final income all reached record highs. Entertainment businesses such as games, movies, and music drove performance. In particular, as a result of increased sales of PS software due to demand for nesting, the game division grew to sales of 2,565.3 billion yen (up 34% year-on-year) and operating income of 342.2 billion yen (up 43% year-on-year).
The total operating income of the three businesses of games, movies, and music is 608.8 billion yen. It earned 62% of total operating profit. The appearance of Sony, whose profits often fluctuated in electronics and semiconductors, is a thing of the past.
This is the biggest concern of the market. The hurdle for net income of 1 trillion yen is quite high because there are no special factors such as a reduction in corporate tax. Although the rate of increase / decrease from the previous fiscal year is not stated due to the shift from US GAAP to international accounting standards, sales are expected to be 9.7 trillion yen, operating income is expected to be 930 billion yen, and net income is expected to be 660 billion yen. The market expected “net profit to be around 740 billion yen.” It is said that the fact that the company’s forecast fell below the market consensus was one of the reasons why the stock price did not rise even though it was the highest financial result in history.
Mr. Yoshida’s executive compensation increased by 20% to 1,253 million yen (1,023 million yen in the previous year). In addition to performance-linked remuneration of 350 million yen, stock options and restricted stock grants were conspicuous. Ranked 5th in the executive compensation ranking of companies that settled in March. It is the top among Japanese people.
Prior to the general meeting of shareholders, a management policy briefing was held online on May 26. “We will expand our customer base from the current 160 million to 1 billion over the long term, centered on the entertainment field such as games and music,” said Yoshida. “The goal of 1 billion people is envisioned in the area of direct-to-consumer (DTC) where the Sony Group directly connects with customers such as games and animation. Think of it as a vision to fill the world with excitement. We will make the existing ones bigger, but the other pillar is M & A (merger / acquisition). “