Sony Group’s growing optimism about the gaming division and other entertainment sectors helped drive its stock to its highest closing value on record.
Its shares topped 3,338 yen on Tuesday. It rose 4.12% to end the day, beating the last time it set such a record back in 2000, during the dot-com boom.
The stock rose to 3,343 yen on Tuesday, at a point, before settling at its new peak.
It’s been a few weeks since the Japanese media and technology giant said its quarterly numbers, which ended September, were strong. It credited the performance in large parts to bigger profits in its gaming unit. Its quarterly net profit rose by 69% to around 2.24 billion dollars.
According to the Wall Street Journal, a report released by Macquarie projects Sony will see an increase in operating profit for the fiscal year in April. It cited the company’s gaming titles as one of the reasons for its revenue projection.
Sony to separate insurance and online banking business from its entertainment sector
Sony plans to split its insurance and online banking business from its core entertainment business over the next years. It is to be noted that over the last few years, Sony has invested billions into expansion by acquiring other companies to help build its ability to expand its content. When it decides to implement this plan in 2025, it will list the new company on the stock market.
The company’s various entertainment divisions include gaming, music, and films, and they account for about 60% of its sales. It has doubled in size from ten years ago as per WSJ.
Sales of software and online services, which boosted its operating profit in games, multiplied while margins on hardware also improved. On top of that, Sony raised its profit outlook, predicting even more income from gaming as the business year ends in March 2025.
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