Sony FY2023 Q3 Consolidated Financial Results
Entertainment, Technology & Service Segment take aways.
- FY23 Q3 sales decreased 2% year-on-year to 735.7 billion yen, mainly due to lower sales of televisions, and operating income decreased 3.9 billion yen to 77.2 billion yen and adjusted OIBDA was 103.4 billion yen, down 1.9 billion yen.
- The FY23 forecast is for sales to decrease 10 billion yen from our previous forecast to 2 trillion 430 billion yen, and for operating income and adjusted OIBDA to be unchanged.
- Looking at the overall year-end selling season, the season generally proceeded as expected.
- In the North American market, there was no sign of a major decline in demand, as had been expected, and sales were relatively steady.
- In the Chinese market, while demand for televisions fell sharply, demand for digital cameras was higher than expected, and overall performance was roughly in-line with expectations.
- Furthermore, as a result of careful production and sales control, the overall inventory level in the segment at the end of December, was significantly reduced to 341.3 billion yen, a 18% decrease year-on-year.
- Regarding televisions in the fourth quarter, we plan to further reduce inventory and reduce costs based on the results of the year-end selling season. Regarding digital cameras and interchangeable lenses, we aim to continue to expand our business, including through the introduction of new products to the market.
Imaging & Sensing Solutions Segment Take Aways
- FY23 sales for the quarter increased significantly 21% year-on-year to 505.2 billion yen primarily due to an increase in sales of image sensors for mobile, and operating income increased 14.9 billion yen to 99.7 billion yen, both new record highs for the segment.
- Adjusted OIBDA increased 29.0 billion yen year-on-year to 163.7 billion yen.
- The FY23 forecast is unchanged from the previous forecast.
- We believe that the smartphone product market, which has continued to experience negative growth compared to the last calendar year, has hit the bottom in the current quarter, but the North American market is still showing declines compared to the last calendar year, and there is still uncertainty in the outlook.
- During the quarter, sales increased significantly year-on-year primarily due to a recovery of the smartphone product market and the introduction of large-sized sensors for high-end products.
- Nevertheless, we plan to continue to operate our business cautiously for the time being while continuing to monitor product market trends and inventory status.
- The yield rate of mobile sensors, which is the most important issue for the current fiscal year, is progressing, following the improvement curve assumed in the previous forecast, and the impact on profitability has not changed from the previous forecast.
- Regarding the sensor business other than mobile sensors, the delay in recovery in the sensor market for industrial and social infrastructure has become particularly noticeable, so we plan to proceed with production adjustments and improve inventory in the fourth quarter.
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