Sony Group Corporation (SONY): history, ownership, mission, how it works & makes money

A Brief History of Sony Group Corporation

Sony Group Corporation, a multinational conglomerate, has evolved significantly since its inception in 1946. Originally founded as Tokyo Telecommunications Engineering Corporation, the company rebranded to Sony in 1958. Over the decades, Sony has diversified its operations, branching out from consumer electronics into entertainment, gaming, and financial services.

Financial Performance Overview as of 2024

As of March 31, 2024, Sony reported consolidated sales and financial services revenue of ¥13,020.8 billion, reflecting an increase of ¥2,046.4 billion from the previous fiscal year. Operating income for the same period was ¥1,208.8 billion, a decrease of ¥93.6 billion compared to ¥1,302.4 billion in 2023.

Segment Performance

Sony's business segments have shown varied performance. The Game & Network Services (G&NS) segment generated significant revenue, contributing ¥4,267.7 billion in 2024, up from ¥3,644.6 billion in 2023. The Music segment also saw growth, with revenues rising to ¥1,594.9 billion from ¥1,364.8 billion year-on-year.

Investment and Cash Flow

For the fiscal year ended March 31, 2024, Sony reported net cash provided by operating activities amounting to ¥1,177.8 billion, a significant increase compared to ¥415.5 billion in 2023. The company utilized ¥818.9 billion in investing activities, down from ¥1,052.7 billion the previous year.

Outlook for Future Growth

Looking ahead, Sony anticipates challenges in the Financial Services segment, expecting a decrease in financial services revenue. However, growth is projected in the Imaging & Sensing Solutions and Music segments, contributing positively to overall performance.

A Who Owns Sony Group Corporation (SONY)

Ownership Structure

As of 2024, Sony Group Corporation (SONY) has a diverse ownership structure characterized by institutional investors, individual shareholders, and company insiders. The major shareholders include:

Major Institutional Shareholders

The following table lists the top institutional shareholders of Sony Group Corporation as of 2024:

Company Insider Ownership

Insider ownership includes shares held by executives and board members. Below is the breakdown of insider ownership:

Market Capitalization

As of March 31, 2024, Sony Group Corporation has a market capitalization of approximately ¥13 trillion (about $95 billion USD).

Stock Performance

In 2024, SONY's stock performance has shown resilience with the following key statistics:

Dividend Information

For the fiscal year ending March 31, 2024, Sony Group Corporation declared the following dividends:

Recent Changes in Ownership

In 2024, notable changes in ownership included:

• Increase in ownership by The Vanguard Group, Inc. by 1.2%.
• BlackRock, Inc. reduced its stake by 0.5%.
• Insider ownership increased due to stock options exercised by executives.

Conclusion

The ownership structure of Sony Group Corporation remains robust, with significant institutional backing and a stable leadership team actively involved in shareholding.

Sony Group Corporation (SONY) Mission Statement

Mission Statement Overview

The mission statement of Sony Group Corporation emphasizes its commitment to "become a company that inspires and fulfills curiosity." This focus on creativity and innovation drives the company to deliver exceptional products and services across various entertainment and technology sectors.

Financial Performance Snapshot

As of the fiscal year ending March 31, 2024, Sony Group Corporation reported substantial financial metrics:

Segment Performance

The following table summarizes the performance across Sony's key business segments for the fiscal year ending March 31, 2024:

Stock Performance

As of June 30, 2024, the stock performance metrics reflect the following:

Future Outlook

The financial forecast for the fiscal year ending March 31, 2025 indicates:

These figures illustrate Sony Group Corporation's ongoing commitment to innovation and market leadership while navigating the challenges of global market dynamics.

How Sony Group Corporation (SONY) Works

Business Segments

Sony Group Corporation operates through several key business segments, each contributing to its overall financial performance.

• Game & Network Services (G&NS)
• Music
• Pictures
• Entertainment, Technology & Services (ET&S)
• Imaging & Sensing Solutions (I&SS)
• Financial Services

Financial Performance (Fiscal Year Ending March 31, 2024)

The consolidated sales for Sony Group Corporation reached ¥13,020.8 billion, reflecting an increase of ¥2,046.4 billion or 19% compared to the previous fiscal year. However, operating income decreased to ¥1,208.8 billion, a decline of ¥93.6 billion year-on-year.

Segment Performance

Each business segment contributes differently to Sony's financial results. Below is a breakdown of the sales and operating income across the main segments for the fiscal year ending March 31, 2024.

Game & Network Services (G&NS)

This segment includes the PlayStation business and related services. Sales amounted to ¥4,267.7 billion, with an operating income of ¥290.2 billion.

Music Segment

The music segment generated sales of ¥1,619.0 billion and an operating income of ¥301.7 billion, benefiting from streaming services and music publishing.

Pictures Segment

Sales in the Pictures segment reached ¥1,493.1 billion with an operating income of ¥117.7 billion, impacted by theatrical releases and licensing revenues.

Entertainment, Technology & Services (ET&S)

This segment saw sales of ¥2,453.7 billion and an operating income of ¥187.4 billion, with fluctuations in television sales affecting performance.

Imaging & Sensing Solutions (I&SS)

Sales for this segment increased to ¥1,602.7 billion, but operating income decreased to ¥193.5 billion, influenced by increased manufacturing costs.

Financial Services

The Financial Services segment's revenue rose to ¥1,770.0 billion, but operating income decreased to ¥173.6 billion, primarily due to market fluctuations.

Cash Flow and Financial Position

As of March 31, 2024, Sony's total cash and cash equivalents amounted to ¥1,907.1 billion, with net cash provided by operating activities of ¥1,177.8 billion.

Outlook for Fiscal Year Ending March 31, 2025

For the fiscal year ending March 31, 2025, Sony forecasts a decline in consolidated sales to ¥12,310 billion, a decrease of ¥710.8 billion or 5.5% from the previous year. Operating income is expected to increase to ¥1,275 billion, reflecting a margin improvement.

How Sony Group Corporation (SONY) Makes Money

Game & Network Services (G&NS)

The Game & Network Services segment is a significant revenue driver for Sony. For the fiscal year ended March 31, 2024, sales increased by 623.1 billion yen (17%) year-on-year, resulting in total revenue of 4 trillion 267.7 billion yen. This growth was primarily attributed to increased sales of non-first-party titles, including add-on content, and favorable foreign exchange rates. Operating income for this segment also rose by 40.2 billion yen to 290.2 billion yen.

Music

The Music segment has shown remarkable growth, driven primarily by streaming services. For the fiscal year ended March 31, 2024, total sales increased by 238.3 billion yen (17%) to reach 1 trillion 619.0 billion yen. The increase in revenue was mainly due to higher paid subscriptions in Recorded Music and Music Publishing, alongside foreign exchange rate impacts. Operating income for this segment also saw a rise, reaching 301.7 billion yen, up from 263.1 billion yen.

Pictures

Sony's Pictures segment continues to thrive, benefiting from theatrical releases and streaming services like Crunchyroll. For the fiscal year ended March 31, 2024, sales increased by 123.6 billion yen (9%) to 1 trillion 493.1 billion yen. Operating income for this segment was reported at 117.7 billion yen.

Imaging & Sensing Solutions (I&SS)

The Imaging & Sensing Solutions segment reported sales of 1 trillion 602.7 billion yen, an increase of 200.6 billion yen (14%) year-on-year. This growth was driven by sales of image sensors for mobile devices. Operating income for this segment declined to 193.5 billion yen from 212.2 billion yen due to rising costs.

Financial Services

Sony's Financial Services segment, which includes Sony Life, Sony Assurance, and Sony Bank, reported revenue of 1 trillion 770.0 billion yen, an increase of 880.9 billion yen year-on-year. This growth was largely due to increased net gains on investments.

Overall Financial Performance

For the fiscal year ended March 31, 2024, Sony Group Corporation reported consolidated total revenue of 13 trillion 20.8 billion yen, an increase of 2 trillion 46.4 billion yen (19%) year-on-year. However, operating income decreased by 93.6 billion yen to 1 trillion 208.8 billion yen.