Sony anticipates flat earnings for the year, impacted by increased tariffs.
In a recent announcement, Sony has revealed plans to execute a partial spin-off of its financial unit, Sony Financial Group, set for October 2025. Sony Financial Group primarily operates in insurance and banking businesses, providing a diverse range of financial services under Sony's umbrella.
President Hiroki Totoki's grip over the conglomerate has strengthened as he took on the CEO role last month. Sony is expecting a modest 0.3% increase in operating profit to 1.28 trillion yen, despite a 100 billion yen hit from U.S. President Donald Trump's trade war.
Following the spin-off, Sony will list the financial unit on the Tokyo Stock Exchange later in 2025, with the board resolution for the spin-off planned for early September 2025. Starting from the current fiscal quarter, Sony will classify its Financial Services business as a discontinued operation in its accounting records.
Industry observers anticipate that Sony’s spin-off strategy aligns with the company’s broader objective to streamline its core entertainment, electronics, and gaming operations by partially separating non-core financial services. This move could potentially boost Sony's financial performance by clarifying the performance of its core business segments.
Sony is also preparing for the launch of "Ghost of Yotei" in October, following the success of "Ghost of Tsushima." Industry analysts expect that "Grand Theft VI" will boost Sony's console business, although Take-Two Interactive has delayed its release to May 2026. Sony has raised the prices of PlayStation 5 in Europe and Britain, citing higher inflation and exchange rate fluctuations.
The spin-off could result in increased shareholder returns, as Sony plans to distribute more than 80% of the spun-off financial entity’s stock to its shareholders as dividends, effectively increasing their direct ownership in the financial unit. Sony shares increased over 3.5% following the announcement of the spin-off, signaling investor confidence in the company’s restructuring and capital return strategy.
The spin-off of Sony Financial Group might bolster Sony's financial performance, as it aims to clarify the performance of its core business segments, including entertainment, electronics, and gaming. In accordance with the spin-off strategy, Sony plans to distribute more than 80% of the spun-off financial entity’s stock to its shareholders as dividends, potentially resulting in increased shareholder returns.
