Sony Group Corp (6758.T) said Thursday it is considering a partial split off of its financial sector three years after assuming full control as the conglomerate focuses on entertainment and image sensors.
Sony said it is considering a two- to three-year timeframe to spin off Sony Financial Group, which operates life insurance and banking, and list it with a slightly under 20% share.
“It is a challenge to balance this with our investment in other growth areas such as entertainment and image sensors,” Sony CFO Hiroki Totoki said at a strategy event.
The video game, music, and film giant is seeking synergies. “The Last of Us” on HBO boosted sales of the gaming franchise and its music, it added.
The corporation claimed tax changes made a partial spin-off of Sony Financial viable. The newly listed entity would keep Sony’s branding.
In March, finance revenue fell 5% to 1.45 trillion yen ($10.74 billion). However, a real estate sale boosted operating profit by 49% to 223.9 billion yen.
Sony forecasts a 40% decline in revenue and a 20% drop in profit due to an accounting adjustment in the current financial year.
After Sony announced it would buy back up to 2.03% of its stock, its share price rose 6% in the Tokyo morning session.
As supply chain issues alleviate, Sony aims to sell 25 million PlayStation 5 consoles this fiscal year. That’s PlayStation’s record.
It also expects first-party software sales to fall due to game pipeline problems.
Sony’s “Marvel’s Spider-Man” sequel is coming this year.
“The Legend of Zelda: Tears of the Kingdom” sold over 10 million copies in the first three days after debut by rival Nintendo Co Ltd (7974.T), whose Switch device has over 125 million installs.
“The Super Mario Bros. Movie” also did well. Sony CEO Kenichiro Yoshida watched the movie in Tokyo and played “Super Mario” too.
“Loveable characters and intellectual property (IP) can live for 30, 50, or 100 years,” he remarked. “For sustainable growth,” Yoshida stated.
Comment Template