Sony posts milder-than-expected Q1 operating profit fall on gaming demand

TOKYO (Reuters) – Japan’s Sony Corp surprised the market on Tuesday by reporting just a 1.1% profit fall for the cornonavirus-hit first quarter, as its gaming business thrived while consumers locked down at home looked for entertainment and downloaded more games.

The gaming business “saw a positive impact from consumers nesting during the virus outbreak,” Financial Officer Hiroki Totoki said at an earnings briefing.

The electronics and entertainment firm posted April-June profit of 228.4 billion yen ($2.15 billion), beating the 143.21 billion yen average of 10 analyst estimates compiled by Refinitiv.

The firm also forecast profit to fall 26.7% to 620 billion yen in the year through March 2021, its lowest in four years, but better than a drop of at least 30% it estimated in May.