6-K 1 tm2522489d1_6k.htm FORM 6-K

 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

 

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

 

For the month of August 2025

Commission File Number: 001-06439

 

SONY GROUP CORPORATION

(Translation of registrant’s name into English)

 

1-7-1 KONAN, MINATO-KU, TOKYO, 108-0075, JAPAN

(Address of principal executive offices)

 

The registrant files annual reports under cover of Form 20-F.

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F,

 

Form 20-F x  Form 40-F ¨

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

SONY GROUP CORPORATION

(Registrant)

 

     
  By: /s/ Lin Tao
      (Signature)
  Lin Tao
  Chief Financial Officer

 

Date: August 7, 2025

 

List of Materials

 

Documents attached hereto:

 

Press release: Consolidated Financial Summary for the First Quarter Ended June 30, 2025

 

 

 

 

Consolidated Financial Summary for the First Quarter Ended June 30, 2025

(In accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”))

 

August 7, 2025
Company name : Sony Group Corporation
Stock exchange listing : Tokyo Stock Exchange (“TSE”)
Securities code : 6758
URL : https://www.sony.com/en/SonyInfo/IR/
Representative : Hiroki Totoki, Representative Corporate Executive Officer
Contact person : Sadahiko Hayakawa, Senior Vice President
Telephone : +81-3-6748-2111
Scheduled date to commence dividend payment : -
Preparation of supplementary materials on financial results : Yes
Holding of financial results briefing : Yes (for investors and analysts)

 

(Amounts are rounded to the nearest million yen, unless otherwise noted.)

 

1. Consolidated financial results for the three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025)

 

(1) Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.)

 

Continuing operations*1 Sales Operating income Income before income taxes Net income Net income attributable to Sony Group Corporation’s stockholders
Three months ended Yen in millions % Yen in millions % Yen in millions % Yen in millions % Yen in millions %
June 30, 2025 2,621,615 2.2 339,955 36.5 356,601 24.3 262,820 22.6 259,027 23.3
June 30, 2024 2,565,361 - 249,121 - 286,882 - 214,343 - 210,153 -

 

Continuing operations*1 Total comprehensive income

Basic earnings

per share*2

Diluted earnings

per share*2

Three months ended Yen in millions % Yen Yen
June 30, 2025 238,401 -45.6 43.08 42.84
June 30, 2024 438,094 - 34.46 34.37

 

*1 At a meeting of Sony Group Corporation’s Board of Directors held on May 14, 2025, Sony Group Corporation decided on a plan for the execution of a partial spin-off of Sony Financial Group Inc. (“SFGI”), a wholly-owned subsidiary which operates the Financial Services business, as of October 1, 2025 (the “Spin-off”). As a result, the Financial Services business has been classified as a discontinued operation and presented separately from continuing operations, comprised of Sony’s businesses excluding the Financial Services business, from the three months ended June 30, 2025, in accordance with IFRS Accounting Standards. Therefore, the above operating results represent the results for continuing operations. The results for the three months ended June 30, 2024, the comparative period, have been re-presented to conform to the current presentation. On a consolidated basis including the discontinued operation, net income, net income attributable to Sony Group Corporation’s stockholders and total comprehensive income for the three months ended June 30, 2025 were 240,702 million yen, 236,909 million yen and 269,569 million yen, respectively. On a consolidated basis including the discontinued operation, basic earnings per share and diluted earnings per share for the three months ended June 30, 2025 were 39.40 yen and 39.18 yen, respectively. For details of discontinued operations, please refer to “Notes to Condensed Quarterly Consolidated Financial Statements - Accounting Policy and Other Information (Discontinued Operations)” on page 13 of the Appendix.

 

*2 Sony Group Corporation conducted a five-for-one stock split of its common stock effective October 1, 2024, with a record date of September 30, 2024. The above figures for basic earnings per share and diluted earnings per share are calculated based on the assumption that the stock split was conducted at the beginning of the fiscal year ended March 31, 2025.

 

(2) Consolidated financial position

 

  Total assets Total equity Equity attributable to Sony Group Corporation’s stockholders Ratio of equity attributable to Sony Group Corporation’s stockholders to total assets
As of Yen in millions Yen in millions Yen in millions %
June 30, 2025 35,134,517 8,587,677 8,295,612 23.6
March 31, 2025 35,293,173 8,510,151 8,179,745 23.2

 

 

 

 

2. Dividends

 

  Annual dividends per share
  First quarter-end Second quarter-end Third quarter-end Year-end Total
  Yen Yen Yen Yen Yen
Fiscal year ended March 31, 2025* - 50.00 - 10.00 -
Fiscal year ending March 31, 2026 -        
Fiscal year ending March 31, 2026 (Forecast)   12.50 - 12.50 25.00

 

Notes:

 

1 Revisions to the forecast of dividends most recently announced: No

 

2 The above dividend forecast for the fiscal year ending March 31, 2026 does not include the dividends in kind of the shares of common stock of SFGI from the above-mentioned Spin-off.

 

* Sony Group Corporation conducted a five-for-one stock split of its common stock effective October 1, 2024, with a record date of September 30, 2024. The above year-end dividend per share for the fiscal year ended March 31, 2025 is based on a number of shares taking into account the stock split. The total annual dividend per share for the fiscal year ended March 31, 2025 is not presented because the total of the interim dividend and the year-end dividend cannot be calculated due to the effect of the stock split. For the fiscal year ended March 31, 2025, taking the stock split into account, the interim dividend per share at the end of the second quarter would be 10 yen and the total annual dividend per share would be 20 yen.

 

3. Forecast for Consolidated Results for the Fiscal Year Ending March 31, 2026 (from April 1, 2025 to March 31, 2026)

 

(Percentages indicate year-on-year changes.)

 

Fiscal year ending March 31, 2026 Sales Operating income Income before income taxes Net income attributable to Sony Group Corporation’s stockholders
  Yen in millions % Yen in millions % Yen in millions % Yen in millions %
Continuing operations 11,700,000 -2.8 1,330,000 4.2 1,350,000 0.5 970,000 -9.1

 

Notes:

 

1 Revisions to the forecast for the fiscal year ending March 31, 2026 most recently announced: Yes

 

2 The above results forecast represents the forecast for continuing operations. Sony Group Corporation has not included the share of profit or loss of investments accounted for using the equity method in SFGI after the above-mentioned Spin-off in the above results forecast, and does not disclose forecasts for the discontinued operation or for the consolidated results for the fiscal year ending March 31, 2026. Please refer to “Update Regarding Partial Spin-off of Financial Services Business” disclosed on May 14, 2025 for the details of the accounting treatments in connection with the Spin-off.

 

3 The estimated impact from the series of changes in U.S. tariff policy at this time is reflected in the above forecasts for operating income, income before income taxes and net income attributable to Sony Group Corporation’s stockholders. The estimated impact is calculated based on the tariff rates announced as of August 1, 2025. The actual impact could vary significantly from this estimation if future tariff policy or other factors are changed.

 

 

 

 

* Notes

 

(1) Significant changes in scope of consolidation during the period : No
   
(2) Changes in accounting policies and changes in accounting estimates:  
     
  (i) Changes in accounting policies required by IFRS Accounting Standards : No
  (ii) Changes in accounting policies due to other reasons : No
  (iii) Changes in accounting estimates : No

 

(3) Number of issued shares (common stock):

 

(i)  Total number of issued shares at the end of the period (including treasury stock)

 

As of June 30, 2025 6,149,810,645 shares
As of March 31, 2025 6,149,810,645 shares

 

(ii)  Number of shares of treasury stock at the end of the period

 

As of June 30, 2025 145,694,280 shares
As of March 31, 2025 124,806,850 shares

 

(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

 

Three months ended June 30, 2025 6,013,191,432 shares
Three months ended June 30, 2024 6,098,848,413 shares

 

Notes:

 

1 Please refer to “Notes to Condensed Quarterly Consolidated Financial Statements - Accounting Policy and Other Information (Net Income Attributable to Sony Group Corporation’s Stockholders per Share (“EPS”) and Weighted-average Number of Outstanding Shares Used for the Computation of EPS of Common Stock)” for number of shares used as basis for calculating consolidated per share data.

 

2 Sony Group Corporation conducted a five-for-one stock split of its common stock effective October 1, 2024, with a record date of September 30, 2024. The above figures for the number of issued shares (common stock) are calculated based on the assumption that the stock split was conducted at the beginning of the fiscal year ended March 31, 2025.

 

* Review of the attached condensed quarterly consolidated financial statements by certified public accountants or an audit firm: No

 

* Proper use of earnings forecasts, and other special matters:

 

Please refer to “Cautionary Statement” on page 15 of the Appendix for assumptions and other matters related to the forecast of financial results.

 

Supplementary materials on financial results including the presentation material for the earnings announcement are available on Sony Group Corporation’s website along with this document.

 

 

 

 

(Appendix)

 

Table of Contents for Appendix

 

Condensed Quarterly Consolidated Financial Statements (Unaudited) 2
   
Condensed Quarterly Consolidated Statements of Financial Position 2
Condensed Quarterly Consolidated Statements of Income (Three months ended June 30) 4
Condensed Quarterly Consolidated Statements of Comprehensive Income (Three months ended June 30) 5
Condensed Quarterly Consolidated Statements of Changes in Stockholders’ Equity (Three months ended June 30) 6
Condensed Quarterly Consolidated Statements of Cash Flows (Three months ended June 30) 7
Notes to Condensed Quarterly Consolidated Financial Statements 9
-      Business Segment Information 9
-      Going Concern Assumption 12
-      Accounting Policy and Other Information 12
   
Overview of Operating Results 15
   
Cautionary Statement 15

 

All financial information is presented on the basis of IFRS Accounting Standards.

 

Sony Group Corporation and its consolidated subsidiaries are together referred to as “Sony” or “Sony Group.”

 

- 1 - 

 

 

(Unaudited)

Condensed Quarterly Consolidated Financial Statements

Condensed Quarterly Consolidated Statements of Financial Position

 

    Yen in millions  
    March 31,
2025		     June 30,
2025		     Change from
March 31, 2025		  
ASSETS                  
Current assets:                        
Cash and cash equivalents     2,980,956       1,600,109       (1,380,847 )
Investments and advances in the Financial Services segment     453,677       -       (453,677 )
Trade and other receivables, and contract assets     1,943,184       1,687,462       (255,722 )
Inventories     1,310,770       1,464,832       154,062  
Other financial assets     145,192       27,161       (118,031 )
Other current assets     621,209       673,138       51,929  
Assets classified as held for distribution to owners     -       20,894,090       20,894,090  
Total current assets     7,454,988       26,346,792       18,891,804  
Non-current assets:                        
Investments accounted for using the equity method     347,718       365,907       18,189  
Investments and advances in the Financial Services segment     18,736,298       -       (18,736,298 )
Property, plant and equipment     1,513,660       1,444,619       (69,041 )
Right-of-use assets     521,685       428,416       (93,269 )
Goodwill     1,508,721       1,476,505       (32,216 )
Content assets     2,249,048       2,249,297       249  
Other intangible assets     671,212       595,422       (75,790 )
Deferred tax assets     559,284       487,498       (71,786 )
Other financial assets     1,164,630       1,247,272       82,642  
Other non-current assets     565,929       492,789       (73,140 )
Total non-current assets     27,838,185       8,787,725       (19,050,460 )
Total assets     35,293,173       35,134,517       (158,656 )

 

(Continued on the following page.)

 

- 2 - 

 

 

Condensed Quarterly Consolidated Statements of Financial Position (Continued)

 

    Yen in millions  
    March 31,
2025		     June 30,
2025		     Change from
 March 31, 2025		  
LIABILITIES                  
Current liabilities:                        
Short-term borrowings     1,843,959       47,099       (1,796,860 )
Current portion of long-term debt     287,445       214,610       (72,835 )
Trade and other payables     2,100,144       2,050,255       (49,889 )
Deposits from customers in the banking business     3,981,193       -       (3,981,193 )
Income taxes payables     89,485       88,724       (761 )
Participation and residual liabilities in the Pictures segment     236,752       214,460       (22,292 )
Other financial liabilities     110,689       34,488       (76,201 )
Other current liabilities     2,039,121       1,644,827       (394,294 )
Liabilities classified as held for distribution to owners     -       19,813,120       19,813,120  
Total current liabilities     10,688,788       24,107,583       13,418,795  
Non-current liabilities:                        
Long-term debt     2,066,842       1,349,673       (717,169 )
Defined benefit liabilities     236,941       198,392       (38,549 )
Deferred tax liabilities     175,228       180,293       5,065  
Insurance contract liabilities     12,689,306       -       (12,689,306 )
Participation and residual liabilities in the Pictures segment     188,919       161,059       (27,860 )
Other financial liabilities     574,351       391,557       (182,794 )
Other non-current liabilities     162,647       158,283       (4,364 )
Total non-current liabilities     16,094,234       2,439,257       (13,654,977 )
Total liabilities     26,783,022       26,546,840       (236,182 )
EQUITY                        
Sony Group Corporation’s stockholders’ equity:                        
Common stock     881,357       881,357       -  
Additional paid-in capital     1,483,527       1,468,420       (15,107 )
Retained earnings     6,678,168       6,855,431       177,263  
Accumulated other comprehensive income     (566,447 )     827,654       1,394,101  
Accumulated other comprehensive income directly related to the disposal group classified as held for distribution to owners     -       (1,359,517 )     (1,359,517 )
Treasury stock, at cost     (296,860 )     (377,733 )     (80,873 )
Equity attributable to Sony Group Corporation’s stockholders     8,179,745       8,295,612       115,867  
Noncontrolling interests     330,406       292,065       (38,341 )
Total equity     8,510,151       8,587,677       77,526  
Total liabilities and equity     35,293,173       35,134,517       (158,656 )

 

- 3 - 

 

 

Condensed Quarterly Consolidated Statements of Income

 

    Yen in millions  
    Three months ended June 30  
    2024     2025     Change  
Continuing operations                        
Sales     2,565,361       2,621,615       56,254  
Costs and expenses:                        
Cost of sales     1,784,389       1,775,067       (9,322 )
Selling, general and administrative     543,414       514,802       (28,612 )
Other operating (income) expense, net     (9,907 )     (9,920 )     (13 )
Total costs and expenses     2,317,896       2,279,949       (37,947 )
Share of profit (loss) of investments accounted for using the equity method     1,656       (1,711 )     (3,367 )
Operating income     249,121       339,955       90,834  
Financial income     53,230       51,654       (1,576 )
Financial expenses     15,469       35,008       19,539  
Income before income taxes     286,882       356,601       69,719  
Income taxes     72,539       93,781       21,242  
Net income from continuing operations     214,343       262,820       48,477  
                         
Discontinued Operations                        
Net income (loss) from discontinued operations     21,485       (22,118 )     (43,603 )
Net income     235,828       240,702       4,874  
                         
Net income attributable to                        
Sony Group Corporation’s stockholders     231,638       236,909       5,271  
Net income from continuing operations     210,153       259,027       48,874  
Net income (loss) from discontinued operations     21,485       (22,118 )     (43,603 )
Noncontrolling interests     4,190       3,793       (397 )

 

    Yen  
    Three months ended June 30  
    2024     2025     Change  
Per share data:                  
Net income (loss) attributable to Sony Group Corporation’s stockholders                        
- Basic     37.98       39.40       1.42  
Continuing operations     34.46       43.08       8.62  
Discontinued operations     3.52       (3.68 )     (7.20 )
- Diluted     37.89       39.18       1.29  
Continuing operations     34.37       42.84       8.47  
Discontinued operations     3.52       (3.66 )     (7.18 )

 

- 4 - 

 

 

Condensed Quarterly Consolidated Statements of Comprehensive Income

 

    Yen in millions  
    Three months ended June 30  
    2024     2025     Change  
Net income     235,828       240,702       4,874  
Other comprehensive income, net of tax -                        
Items that will not be reclassified to profit or loss                        
Changes in equity instruments measured at fair value through other comprehensive income     (15,586 )     (802 )     14,784  
Remeasurement of defined benefit pension plans     (758 )     0       758  
Share of other comprehensive income of investments accounted for using the equity method     (1,140 )     (41 )     1,099  
Other comprehensive income from discontinued operations     495       (16 )     (511 )
Items that may be reclassified subsequently to profit or loss                        
Cash flow hedges     (2,277 )     (944 )     1,333  
Exchange differences on translating foreign operations     239,701       (22,301 )     (262,002 )
Share of other comprehensive income of investments accounted for using the equity method     3,811       (331 )     (4,142 )
Other comprehensive income from discontinued operations     (82,193 )     53,302       135,495  
Total other comprehensive income, net of tax     142,053       28,867       (113,186 )
Comprehensive income     377,881       269,569       (108,312 )
                         
Total Comprehensive income                        
Comprehensive income from continuing operations     438,094       238,401       (199,693 )
Comprehensive income from discontinued operations     (60,213 )     31,168       91,381  
                         
Comprehensive income attributable to                        
Sony Group Corporation’s stockholders     372,839       266,888       (105,951 )
Comprehensive income from continuing operations     433,052       235,720       (197,332 )
Comprehensive income from discontinued operations     (60,213 )     31,168       91,381  
Noncontrolling interests     5,042       2,681       (2,361 )

 

- 5 - 

 

 

Condensed Quarterly Consolidated Statements of Changes in Stockholders’ Equity

 

   Yen in millions 
    

 

 

Common

stock

    

 

Additional

paid-in

capital

    

 

 

Retained

earnings

    

Accumulated

other

comprehensive

income

    

 

Treasury

stock, at

cost

    

Sony Group

Corporation’s

stockholders’

equity

    

 

 

Noncontrolling

interests

    

 

 

 

Total equity

 
Balance at April 1, 2024   881,357    1,483,410    6,002,407    (376,063)   (403,934)   7,587,177    168,928    7,756,105 
Comprehensive income:                                        
Net income             231,638              231,638    4,190    235,828 
Other comprehensive income, net of tax                  141,201         141,201    852    142,053 
Total comprehensive income             231,638    141,201         372,839    5,042    377,881 
Transfer to retained earnings             (25,338)   25,338         -         - 
Transactions with stockholders and other:                                        
Stock issued under stock-based compensation transactions        (1)   (642)        2,417    1,774         1,774 
Compensation expenses related to stock-based compensation transactions        5,504                   5,504         5,504 
Dividends declared             (54,965)             (54,965)   (2,076)   (57,041)
Purchase of treasury stock                       (51,255)   (51,255)        (51,255)
Reissuance of treasury stock        1              3    4         4 
Cancellation of treasury stock        (839)   (127,738)        128,577    -         - 
Transactions with noncontrolling interests shareholders and other        (3,626)                  (3,626)   119,613    115,987 
Balance at June 30, 2024   881,357    1,484,449    6,025,362    (209,524)   (324,192)   7,857,452    291,507    8,148,959 

 

   Yen in millions 
  

 

 

 

 

 

 

 

 

Common

stock

  

 

 

 

 

 

 

 

Additional

paid-in

capital

  

 

 

 

 

 

 

 

 

Retained

earnings

  

 

 

 

 

 

 

Accumulated

other

comprehensive

income

   Accumulated
other
comprehensive
income directly
related to
disposal groups
classified as
held for
distribution to
owners		  

 

 

 

 

 

 

 

Treasury

stock, at

cost

  

 

 

 

 

 

 

Sony Group

Corporation’s

stockholders’

equity

  

 

 

 

 

 

 

 

 

Noncontrolling

interests

   Total equity 
Balance at April 1, 2025   881,357    1,483,527    6,678,168    (566,447)   -    (296,860)   8,179,745    330,406    8,510,151 
Comprehensive income:                                             
Net income             236,909                   236,909    3,793    240,702 
Other comprehensive income, net of tax                  (57,601)   87,580         29,979    (1,112)   28,867 
Total comprehensive income             236,909    (57,601)   87,580         266,888    2,681    269,569 
Transfer to retained earnings             604    (619)   15         -         - 
Transactions with stockholders and other:                                             
Stock issued under stock-based compensation transactions        491                   12,466    12,957         12,957 
Compensation expenses related to stock-based compensation transactions        4,662                        4,662         4,662 
Dividends declared             (60,250)                  (60,250)   (18,283)   (78,533)
Purchase of treasury stock                            (93,339)   (93,339)        (93,339)
Reissuance of treasury stock        0                   0    0         0 
Transfer to held for distribution to owners                  1,447,112    (1,447,112)        -         - 
Transactions with noncontrolling interests shareholders and other        (20,260)        5,209              (15,051)   (22,739)   (37,790)
Balance at June 30, 2025   881,357    1,468,420    6,855,431    827,654    (1,359,517)   (377,733)   8,295,612    292,065    8,587,677 

 

- 6 - 

 

 

Condensed Quarterly Consolidated Statements of Cash Flows

 

    Yen in millions  
    Three months ended June 30  
    2024     2025  
Cash flows from operating activities:                
Income before income taxes from continuing operations     286,882       356,601  
Adjustments to reconcile income before income taxes from continuing operations to net cash provided by (used in) operating activities:                
Depreciation and amortization, including amortization of contract costs     261,674       274,399  
Other operating (income) expense, net     (9,907 )     (9,920 )
Gain on securities, net     (31,406 )     (30,092 )
Share of loss of investments accounted for using the equity method, net of dividends     5,160       7,689  
Changes in assets and liabilities:                
Decrease in trade receivables and contract assets     187,050       105,820  
Increase in inventories     (123,840 )     (156,435 )
Increase in content assets     (257,588 )     (148,883 )
Increase in trade payables     111,542       90,138  
Increase (decrease) in taxes payable other than income taxes, net     (3,966 )     8,260  
Increase in other financial assets and other current assets     (37,706 )     (54,560 )
Decrease in other financial liabilities and other current liabilities     (112,302 )     (187,582 )
Income taxes paid     (97,862 )     (53,374 )
Other     (30,809 )     51,820  
Total net cash provided by operating activities from continuing operations     146,922       253,881  
Net cash used in operating activities from discontinued operations     (273,207 )     (176,552 )
Net cash provided by (used in) operating activities     (126,285 )     77,329  

 

(Continued on the following page.)

 

- 7 - 

 

 

Condensed Quarterly Consolidated Statements of Cash Flows (Continued)

 

    Yen in millions  
    Three months ended June 30  
    2024     2025  
Cash flows from investing activities:                
Payments for property, plant and equipment and other intangible assets     (204,167 )     (120,094 )
Proceeds from sales of property, plant and equipment and other intangible assets     5,617       1,809  
Payments for investments and advances     (15,747 )     (36,683 )
Proceeds from sales or return of investments and collections of advances     30,896       4,415  
Payments for purchases of businesses and other     (169,794 )     (12,217 )
Proceeds from sales of businesses     1,609       -  
Other     259       74  
Total net cash used in investing activities from continuing operations     (351,327 )     (162,696 )
Net cash used in investing activities from discontinued operations     (7,795 )     (10,622 )
Net cash used in investing activities     (359,122 )     (173,318 )
Cash flows from financing activities:                
Increase (decrease) in short-term borrowings, net     24,764       (46 )
Proceeds from issuance of long-term debt     6,275       5,792  
Payments of long-term debt     (27,257 )     (25,067 )
Dividends paid     (54,451 )     (59,870 )
Payments for purchases of treasury stock     (51,255 )     (93,339 )
Capital contribution from non-controlling interests     109,527       -  
Other     (3,575 )     (37,371 )
Total net cash provided by (used in) financing activities from continuing operations     4,028       (209,901 )
Net cash used in financing activities from discontinued operations     (2,496 )     (2,718 )
Net cash provided by (used in) financing activities     1,532       (212,619 )
Effect of exchange rate changes on cash and cash equivalents     53,860       (45,854 )
Net decrease in cash and cash equivalents     (430,015 )     (354,462 )
Cash and cash equivalents at beginning of the fiscal year     1,907,113       2,980,956  
Cash and cash equivalents at end of the period     1,477,098       2,626,494  
Cash and cash equivalents included in assets held for distribution to owners     -       1,026,385  
Cash and cash equivalents in the Condensed Quarterly Consolidated Statements of Financial Position     1,477,098       1,600,109  

 

- 8 - 

 

 

Notes to Condensed Quarterly Consolidated Financial Statements

  

Business Segment Information

 

At a meeting of Sony Group Corporation’s Board of Directors (the “Board”) held on May 14, 2025, Sony Group Corporation decided the plan regarding the execution of a partial spin-off (the “Spin-off”) of Sony Financial Group Inc. (“SFGI”), a wholly-owned subsidiary which operates the Financial Services business. As a result, the Financial Services business was classified as a discontinued operation. Due to the classification of the Financial Services business as a discontinued operation, the Financial Services business has been excluded from the reporting segments since the three months ended June 30, 2025. Consequently, the figures for comparative periods have been re-presented. For further information on discontinued operations, refer to “Notes to Condensed Quarterly Consolidated Financial Statements - Accounting Policy and Other Information (Discontinued operations).”

 

(Business Segments)

 

Segment sales

 

    Yen in millions  
    Three months ended June 30  
    2024     2025     Change  
Sales:                  
Game & Network Services -                        
Customers     844,288       912,810       68,522  
Intersegment     20,623       23,723       3,100  
Total     864,911       936,533       71,622  
Music -                        
Customers     435,726       458,952       23,226  
Intersegment     6,296       6,389       93  
Total     442,022       465,341       23,319  
Pictures -                        
Customers     336,556       326,206       (10,350 )
Intersegment     790       898       108  
Total     337,346       327,104       (10,242 )
Entertainment, Technology & Services -                        
Customers     594,179       518,677       (75,502 )
Intersegment     6,736       15,581       8,845  
Total     600,915       534,258       (66,657 )
Imaging & Sensing Solutions -                        
Customers     333,308       385,464       52,156  
Intersegment     20,172       22,726       2,554  
Total     353,480       408,190       54,710  
All Other -                        
Customers     18,933       16,239       (2,694 )
Intersegment     2,157       3,091       934  
Total     21,090       19,330       (1,760 )
Corporate and elimination     (54,403 )     (69,141 )     (14,738 )
Consolidated total     2,565,361       2,621,615       56,254  

 

Note:

 

Game & Network Services (“G&NS”) intersegment amounts primarily consist of transactions with the Entertainment, Technology & Services (“ET&S”) segment. ET&S intersegment amounts primarily consist of transactions with the G&NS segment. Imaging & Sensing Solutions (“I&SS”) intersegment amounts primarily consist of transactions with the G&NS segment and the ET&S segment. Corporate and elimination includes certain brand and patent royalty income.

 

Intersegment amounts in each segment, as well as Corporate and elimination, include transaction amounts with discontinued operations.

 

- 9 - 

 

 

Segment profit (loss)

 

    Yen in millions  
    Three months ended June 30  
    2024     2025     Change  
Operating income (loss):                        
Game & Network Services     65,209       147,957       82,748  
Music     85,893       92,807       6,914  
Pictures     11,308       18,665       7,357  
Entertainment, Technology & Services     64,083       43,143       (20,940 )
Imaging & Sensing Solutions     36,647       54,251       17,604  
All Other     1,275       (4,968 )     (6,243 )
Total     264,415       351,855       87,440  
Corporate and elimination     (15,294 )     (11,900 )     3,394  
Consolidated operating income     249,121       339,955       90,834  

 

Operating income (loss) is sales less costs and expenses, and includes the share of profit (loss) of investments accounted for using the equity method.

 

Operating income (loss) in each segment, as well as Corporate and elimination, include transaction amounts with discontinued operations.

 

- 10 - 

 

 

(Sales to Customers by Product Category)

 

The following table is a breakdown of sales to external customers by product category for each segment. Sony management views each segment as a single operating segment.

 

   Yen in millions 
   Three months ended June 30 
Sales:  2024    2025   Change 
Game & Network Services               
Digital Software and Add-on Content   432,752    492,147    59,395 
Network Services   159,346    172,648    13,302 
Hardware and Others   252,190    248,015    (4,175)
Total   844,288    912,810    68,522 
Music               
Recorded Music - Streaming   196,663    196,016    (647)
Recorded Music - Others   102,616    105,473    2,857 
Music Publishing   96,676    98,685    2,009 
Visual Media and Platform   39,771    58,778    19,007 
Total   435,726    458,952    23,226 
Pictures               
Motion Pictures   133,034    107,133    (25,901)
Television Productions   94,285    121,627    27,342 
Media Networks   109,237    97,446    (11,791)
Total   336,556    326,206    (10,350)
Entertainment, Technology & Services               
Imaging   207,025    187,299    (19,726)
Sound   74,067    65,871    (8,196)
Network Services   44,638    45,597    959 
Displays   137,227    101,263    (35,964)
Other   131,222    118,647    (12,575)
Total   594,179    518,677    (75,502)
Imaging & Sensing Solutions   333,308    385,464    52,156 
All Other   18,933    16,239    (2,694)
Corporate   2,371    3,267    896 
Consolidated total   2,565,361    2,621,615    56,254 

 

Note:

 

Sony has realigned its product categories in the ET&S segment due to changes in business categories from the first quarter of the fiscal year ending March 31, 2026. In accordance with this realignment, results for the three months ended June 30, 2024 in the table above have been reclassified to conform to the current presentation.

 

In the G&NS segment, Digital Software and Add-on Content includes distribution of software titles and add-on content through the network; Network Services includes network services relating to game, video and music content; Hardware and Others includes home gaming consoles, packaged software, game software sold bundled with home gaming consoles, peripheral devices and first-party software for third-party platforms. In the Music segment, Recorded Music - Streaming includes the distribution of digital recorded music by streaming; Recorded Music - Others includes the distribution of recorded music by physical media and digital download as well as revenue derived from artists’ live performances and merchandising; Music Publishing includes the management and licensing of the words and music of songs; Visual Media and Platform includes the production and distribution of animation titles and game applications, and various service offerings for music and visual products. In the Pictures segment, Motion Pictures includes the worldwide production, acquisition and distribution of live-action and animated motion pictures; Television Productions includes the production, acquisition and distribution of television programming; Media Networks includes the operation of television networks and direct-to-consumer streaming services worldwide. In the ET&S segment, Imaging includes image and video content creation products and solutions including interchangeable lens cameras and interchangeable lenses; Sound includes headphones and wireless speakers; Network Service includes internet-related services; Displays includes display products such as LCD and OLED televisions as well as projectors; Other includes smartphones, home audio products and medical equipment, as well as sports officiating support and content production support services.

 

- 11 - 

 

 

Going Concern Assumption

 

Not Applicable

 

Accounting Policy and Other Information

 

(Net Income Attributable to Sony Group Corporation’s Stockholders per Share (“EPS”) and Weighted-average Number of Outstanding Shares Used for the Computation of EPS of Common Stock)

 

   Yen in millions 
   Three months ended June 30 
   2024    2025 
Net income (loss) attributable to Sony Group Corporation’s stockholders for basic and diluted EPS computation   231,638    236,909 
Continuing operations   210,153    259,027 
Discontinued operations   21,485    (22,118)

 

   Thousands of shares 
   Three months ended June 30 
   2024   2025 
Weighted-average shares outstanding for basic EPS computation   6,098,848    6,013,191 
Effect of dilutive securities:          
Stock options   13,937    24,729 
Restricted stock units   1,248    8,990 
Weighted-average shares for diluted EPS computation   6,114,033    6,046,910 

 

Note:

 

As of October 1, 2024, Sony Group Corporation conducted a five-for-one stock split of its common stock. Basic and diluted EPS are calculated assuming that the stock split was implemented at the beginning of the fiscal year ended March 31, 2025.

 

(Segmentation)

 

The G&NS segment includes the network services businesses, the manufacture and sales of home gaming products and the production and sales of digital software and add-on content. The Music segment includes the Recorded Music, Music Publishing and Visual Media and Platform businesses. The Pictures segment includes the Motion Pictures, Television Productions and Media Networks businesses. The ET&S segment includes the Imaging business, the Sound business, the Network Services business and the Displays business. The I&SS segment includes the image sensors business. All Other consists of various operating activities, including the disc manufacturing and recording media businesses. Sony’s products and services are generally unique to a single operating segment.

 

At a meeting of the Board held on May 14, 2025, Sony Group Corporation decided the plan regarding the execution of the Spin-off. As a result, the Financial Services business was classified as a discontinued operation. Due to the classification of the Financial Services business as a discontinued operation, the Financial Services business has been excluded from the reporting segments since the three months ended June 30, 2025. Consequently, the figures for comparative periods have been re-presented. For further information on discontinued operations, refer to “Notes to Condensed Quarterly Consolidated Financial Statements - Accounting Policy and Other Information (Discontinued operations).”

 

(Change in presentation)

 

At a meeting of the Board held on May 14, 2025, Sony Group Corporation decided the plan regarding the execution of the Spin-off. As a result, the Financial Services business has been classified as a discontinued operation since the three months ended June 30, 2025. Income and losses related to business classified as a discontinued operation are separately presented, net of income taxes, following net income from continuing operations, in the condensed quarterly consolidated statements of income. In accordance with the classification of the Financial Services business as a discontinued operation, the condensed quarterly consolidated statements of income, condensed quarterly consolidated statements of comprehensive income, condensed quarterly consolidated statements of cash flows, and related notes to the condensed quarterly consolidated financial statements for comparative periods have been re-presented separately for continuing operations and discontinued operations. In the condensed quarterly consolidated statements of cash flows, cash flows from operating, investing and financing activities are presented separately for continuing operations and discontinued operations. The balance of cash and cash equivalents at end of the period is presented separately as cash and cash equivalents included in assets held for distribution to owners and cash and cash equivalents in the condensed quarterly consolidated statements of financial position. For further information on discontinued operations, refer to “Notes to Condensed Quarterly Consolidated Financial Statements - Accounting Policy and Other Information (Discontinued operations).”

 

- 12 - 

 

 

(Discontinued operations)

 

At a meeting of the Board held on May 14, 2025, Sony Group Corporation decided to submit a resolution for the execution of the Spin-off, as of October 1, 2025, to the Board in early September 2025. In the Spin-off, Sony Group Corporation plans to distribute slightly more than 80% of the shares of common stock of SFGI (“SFGI share(s)”) to shareholders of Sony Group Corporation through dividends in kind. As a result of the Board resolution on May 14, 2025 on the plan for the execution of the Spin-off, Sony Group Corporation determined that the distribution of SFGI shares is highly probable and the Financial Services business was classified as a discontinued operation, in accordance with IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations,” during the three months ended June 30, 2025. As a result, in the condensed quarterly consolidated statements of income, condensed quarterly consolidated statements of comprehensive income and condensed quarterly consolidated statements of cash flows; revenue, expenses, other comprehensive income and cash flows of the Financial Services business, among other items, are separated from continuing operations, comprised of Sony’s businesses excluding the Financial Services business, and presented as net income or loss from discontinued operations, other comprehensive income from discontinued operations, and net cash from discontinued operations, respectively. Additionally, in the condensed quarterly consolidated statements of financial position, assets and liabilities of the Financial Services business were classified as a disposal group held for distribution to owners. Accumulated other comprehensive income directly related to the disposal group was classified as held for distribution to owners.

 

For the disposal group classified as held for distribution to owners, as of June 30, 2025, its fair value less the incremental costs directly attributable to the distribution of the disposal group, excluding finance costs and income tax expense, is more than the carrying amount, so they are measured using the carrying amount.

 

(1) Disposal group classified as held for distribution to owners

 

   Yen in millions 
   June 30, 2025 
Assets classified as held for distribution to owners     
Cash and cash equivalents   1,026,385 
Investments and advances in the Financial Services business   19,145,448 
Others   722,257 
Total assets   20,894,090 
Liabilities classified as held for distribution to owners     
Short-term borrowings   1,727,076 
Deposits from customers in the banking business   4,267,796 
Long-term debt   688,136 
Insurance contract liabilities   12,782,356 
Others   347,756 
Total liabilities   19,813,120 
Accumulated other comprehensive income directly related to the disposal group classified as held for distribution to owners     
Changes in equity instruments measured at fair value through other comprehensive income   (4,911)
Changes in debt instruments measured at fair value through other comprehensive income   (1,479,357)
Insurance finance income (expenses)   125,607 
Others   (856)
Total accumulated other comprehensive income   (1,359,517)

 

- 13 - 

 

 

(2) Results of discontinued operations

 

   Yen in millions 
   Three months ended June 30 
   2024   2025 
Financial services revenue   446,288    208,256 
Financial services expenses   416,254    239,933 
Other income (expenses), net   (49)   (122)
Income (loss) before income taxes from discontinued operations   29,985    (31,799)
Income taxes   8,500    (9,681)
Net income (loss) from discontinued operations   21,485    (22,118)
Other comprehensive income from discontinued operations   (81,698)   53,286 
Items that will not be reclassified to profit or loss          
Changes in equity instruments measured at fair value through other comprehensive income   524    35 
Remeasurement of defined pension plans   (29)   (51)
Items that may be reclassified subsequently to profit or loss          
Changes in debt instruments measured at fair value through other comprehensive income   (432,256)   (132,899)
Insurance finance income (expenses)   350,402    186,291 
Others   (339)   (90)
Comprehensive income from discontinued operations   (60,213)   31,168 

 

- 14 - 

 

 

Overview of Operating Results

 

For the overview of operating results for the three months ended June 30, 2025, including the forecast for the fiscal year ending March 31, 2026, please refer to “Q1 FY2025 Consolidated Financial Results” (the presentation material for the earnings announcement) disclosed on the same date as this document on the TDnet of the TSE, the EDGAR system of the U.S. SEC and the website of Sony Group Corporation.

 

Cautionary Statement

 

Statements made in this material with respect to Sony’s current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Sony. Forward-looking statements include, but are not limited to, those statements using words such as “believe,” “expect,” “plans,” “strategy,” “prospects,” “forecast,” “estimate,” “project,” “anticipate,” “aim,” “intend,” “seek,” “may,” “might,” “could” or “should,” and words of similar meaning in connection with a discussion of future operations, financial performance, events or conditions. From time to time, oral or written forward-looking statements may also be included in other materials released to the public. These statements are based on management’s assumptions, judgments and beliefs in light of the information currently available to it. Sony cautions investors that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore investors should not place undue reliance on them. Investors also should not rely on any obligation of Sony to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Sony disclaims any such obligation. Risks and uncertainties that might affect Sony include, but are not limited to:

 

(i) Sony’s ability to maintain product quality and customer satisfaction with its products and services;
(ii) Sony’s ability to continue to design and develop and win acceptance of, as well as achieve sufficient cost reductions for, its products and services, including image sensors, game and network platforms, smartphones and televisions, which are offered in highly competitive markets characterized by severe price competition and continual new product and service introductions, rapid development in technology and subjective and changing customer preferences;
(iii) Sony’s ability to implement successful hardware, software, and content integration strategies, and to develop and implement successful sales and distribution strategies in light of new technologies and distribution platforms;
(iv) the effectiveness of Sony’s strategies and their execution, including but not limited to the success of Sony’s acquisitions, joint ventures, investments, capital expenditures, restructurings and other strategic initiatives;
(v) changes in laws, regulations and government policies in the markets in which Sony and its third-party suppliers, service providers and business partners operate, including those related to taxation, as well as growing consumer focus on corporate social responsibility;
(vi) Sony’s continued ability to identify the products, services and market trends with significant growth potential, to devote sufficient resources to research and development, to prioritize investments and capital expenditures correctly and to recoup its investments and capital expenditures, including those required for technology development and product capacity;
(vii) Sony’s reliance on external business partners, including for the procurement of parts, components, software and network services for its products or services, the manufacturing, marketing and distribution of its products, and its other business operations;
(viii) the global economic and political environment in which Sony operates and the economic and political conditions in Sony’s markets, particularly levels of consumer spending;
(ix) Sony’s ability to meet operational and liquidity needs as a result of significant volatility and disruption in the global financial markets or a ratings downgrade;
(x) Sony’s ability to forecast demands, manage timely procurement and control inventories;
(xi) foreign exchange rates, particularly between the yen and the U.S. dollar, the euro and other currencies in which Sony makes significant sales and incurs production costs, or in which Sony’s assets, liabilities and operating results are denominated;
(xii) Sony’s ability to recruit, retain and maintain productive relations with highly skilled personnel;
(xiii) Sony’s ability to prevent unauthorized use or theft of intellectual property rights, to obtain or renew licenses relating to intellectual property rights and to defend itself against claims that its products or services infringe the intellectual property rights owned by others;
(xiv) the impact of changes in interest rates and unfavorable conditions or developments (including market fluctuations or volatility) in the equity and bond markets on the revenue and operating income of the Financial Services business;
(xv) shifts in customer demand for financial services such as life insurance and Sony’s ability to conduct successful asset liability management in the Financial Services business;
(xvi) risks related to catastrophic disasters, geopolitical conflicts, pandemic disease or similar events;
(xvii) the ability of Sony, its third-party service providers or business partners to anticipate and manage cybersecurity risk, including the risk of unauthorized access to Sony’s business information and the personally identifiable information of its employees and customers, potential business disruptions or financial losses; and
(xviii) the outcome of pending and/or future legal and/or regulatory proceedings.

 

Risks and uncertainties also include the impact of any future events with material adverse impact. The continued impact of developments relating to the situations in Ukraine and Russia and in the Middle East, as well as the series of changes in U.S. tariff policy, could heighten many of the risks and uncertainties noted above. Important information regarding risks and uncertainties is also set forth in Sony’s most recent Form 20-F, which is on file with the U.S. Securities and Exchange Commission.

 

- 15 -