Japanese conglomerate Sony Group reported a decline in net earnings for the full year 2023 on Tuesday, amid higher costs and expenses.
The electronics giant did record an increase in revenue but expects profit of 925 billion yen ($5.915 billion) in 2024, down 4.7% from last year.
For the 12-month period ended March 31, Sony posted profit of 970.573 billion yen or 785.68 yen per share, less than the restated 1.005 trillion yen or 809.85 yen per share registered last year.
Pre-tax income was at 1.268 trillion yen as against last year's restated 1.274 trillion yen.
Operating income fell to 1.208 trillion yen from a restated 1.302 trillion yen a year ago. Total costs and expenses increased to 11.822 trillion from last year's restated 9.696 trillion yen.
Total sales and financial services revenue stood at 13.020 trillion yen, higher than last year's restated 10.974 trillion yen, due to a significant increase in sales of its Financial Services, Game & Network Services, Music and Imaging & Sensing Solutions segments.
Sales of Game & Network Services increased to 4.267 trillion yen from last year's restated 3.644 trillion yen.
Sony's profit forecast for 2024 is mainly due to an expected increase in income taxes resulting from a decrease in tax credits in both Japan and the US.
Annual operating income is projected to be at 1.275 trillion yen, up 5.5% from last year.
Sony expects its annual 2024 sales to decline by 5.5% to 12.310 trillion yen. This is mainly as a result of an expected significant decrease in sales in the Financial Services segment and a projected fall in the Entertainment, Technology & Services and G&NS segments.