Gains from streaming services in both recorded music and publishing pushed Sony Music’s consolidated revenue up 5.3% in the first fiscal quarter ended June 30, the company announced Wednesday (Aug. 6).
Total revenue reached 465.3 billion yen ($3.22 billion at the average exchange rate in the quarter) while operating income improved 8.0% to 92.8 billion yen ($641.8 million).
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The yen-denominated results included a negative impact from foreign exchange of nearly 28 billion yen ($194 million) due to the yen gaining over 5% against the U.S. dollar since the previous quarter.
Recorded music revenue rose 0.7% to 301.5 billion yen ($2.09 billion) but improved 8.4% on a dollar basis (not in constant currency). Streaming revenue fell 0.3% to 196.0 billion yen ($1.36 billion), although dollar-denominated streaming revenue grew 7.3%.
Other recorded music revenue improved 2.8% to 105.5 billion ($729.4 million). In the other category, physical sales rose 10.6% to 26 billion yen ($180.4 million) and download sales jumped 52% to 9.8 billion yen ($68 million). The remainder of other revenue — public performance, broadcast and sync — fell 4.2% to 69.5 billion yen ($481 million).
Sony Music Entertainment’s top album in the quarter was Bad Bunny’s DeBÍ TiRAR MáS FOToS. Other top titles include SZA’s SOS, Sleep Token’s Even in Arcadia, Tate McRae’s So Close to What and Bad Bunny’s previous album, Un Verano Sin Ti. Sony Music Japan’s top release was Hollow by K-pop group Stray Kids, followed by two titles by Sakurazaka46, Addiction and Make or Break, and Plazma / BOW AND ARROW by Kenshi Yonezu.
In the music publishing division, revenue rose 2.1% to 98.7 billion yen ($682.5 million). The segment’s streaming revenue rose 0.4% to 56.7 billion yen ($392.4 million). On a dollar-denominated basis, publishing revenue rose 9.8% and streaming revenue grew 8.1%.
Excluding the visual media and platform division, which includes mobile games, Sony Music’s quarterly revenue from recorded music and publishing increased 1.1%. However, on a dollar basis, recorded music and publishing increased 8.8% from the prior-year quarter. Visual media and platform revenue jumped 47.8% due to higher gaming revenue and the consolidation of eplus, a ticketing platform.
The current fiscal year is looking better than it did three months ago. Gains in the recorded music division, mainly from growth in revenue from streaming services, led Sony Music to lift its prior forecast for fiscal 2025 by 20 billion yen ($135.6 million at the current exchange rate) to 1.87 trillion yen ($12.68 billion). That would represent 2.7% annual revenue growth unadjusted for foreign exchange.
