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Sony outlines financial targets through FY'20

Sony Corp. on May 22 unveiled its financial targets and mid-term strategy for fiscal years 2018 to 2020, including plans to generate societal value and high profitability across its electronics, entertainment and financial services divisions.

For the fiscal year ending March 31, 2019, the Japanese consumer electronics giant is targeting ¥190 billion in operating income for its game and network services segment, ¥112 billion for its music segment, ¥42 billion for its pictures segment, ¥86 billion for its home entertainment and sound division, ¥75 billion for its imaging products and solutions segment and ¥100 billion for its semiconductors division.

Sony, however, expects a loss of ¥15 billion for its mobile communications segment. The company lowered its forecasts for the unit following a review of smartphone sales. In its recent fiscal fourth-quarter earnings, Sony posted operating losses of ¥44.60 billion in its mobile phones segment.

For the fiscal year ending March 31, 2021, Sony aims to reach ¥130 billion to ¥170 billion in operating income for its game and network services segment, ¥110 billion to ¥130 billion for its music segment, ¥58 billion to ¥68 billion for its pictures segment, ¥75 billion to ¥105 billion for its home entertainment and sound division, ¥85 billion to ¥105 billion for its imaging products and solutions segment, ¥20 billion to ¥30 billion for its mobile communications division and ¥160 billion to ¥200 billion for its mobile communications segment.

The company said it will reinforce direct-to-consumer services and content IP and create communities of interest to bring together people who share emotional values and experiences.

Sony also plans to position branded hardware to connect users and creators through innovative video and audio technologies.

Among Sony's strategies to achieve its targets is to expand PlayStation Network to grow subscriber numbers, strengthen the music segment's content IP for continued growth in the streaming market, and expand the media networks business of its pictures division in India to enhance profitability.

Sony will also seek to leverage the technologies created in its branded hardware division to support long-term initiatives in areas such as medical products, artificial intelligence and robotics.

For its semiconductors segment, the company said it will extend the development of sensing applications beyond the area of smartphones into new fields such as automotive.

Sony added that it will also focus on its financial services division to position itself closer to customers.

The company plans to spend approximately ¥1 trillion on capital expenditure for the next three-year period.