Sony Music suffered some revenue losses at the beginning of 2019 due to the COVID-19 pandemic, however the company has slightly bounced back, making a 5 percent revenue gain in its second quarter. The company’s revenue increased 5.3 percent to 230.8 billion yen ($2.174 billion) from 219.3 billion yen ($2.04 billion), thanks to strong streaming performances.
These revenue increases haven’t been Sony’s only gains however, their operating income grew 41 percent to 52.85 billion yen ($497.7 million) from 37.48 billion yen ($349 million) compared to the prior year’s fiscal second quarter. Part of this gain came from a 5.4 billion yen ($50.85 million) undisclosed business transfer, but the company still would have posted a 47.5 billion yen ($446.8 million) in operating income, or a 26.6 percent increase despite these claims. Sony Music also dealt with a 1.12 billion yen ($10.6 million) restructuring charge.
Streaming saw some of the largest gains by making up 63.9 percent of recorded music revenue by totaling 78.83 billion yen ($752.25 million) an 18 percent increase over the 66.8 billion yen ($622 million) recorded in the year earlier corresponding period. While downloads were down compared to 2019, digital revenue totaled 87.53 billion yen ($824.2 million), a 15.7 percent increase over the 2019’s second quarter total of 75.64 billion yen. More surprisingly was physical revenue, which increased 29.4% percent to 26.3 billion yen ($247.5 million) compared to 2019’s second quarter of 20.3 billion ($189.1 billion). Physical sales now comprise 21.3 percent of recorded music, versus the 18.1 percent from 2019.
While Sony saw a dip in revenue during the first quarter, their operating income grew by 40 percent, with this new quarter also beating out its operating income projections. The company also recently created $100 million fund to support social justice causes.
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