Sony Music revenue up 17% in fiscal year, Tops Guidance

Led by SZA warning signTravis Scott's UTOPIA and growth in paid subscription streaming services, Sony Music's revenue rose 16.9 percent to 1.59 trillion yen ($11.05 billion) in the fiscal year ended March 31, its parent company Sony Corp. said. , on Tuesday, May 14.

Sony Music's revenue beat the 1.56-1.57 trillion yen forecast given in Sony Corp's previous quarterly earnings report in February. Its adjusted operating income before depreciation and amortization (AOIBDA) of 368.7 billion yen ($2.55 billion) also beat guidance of 350-360 billion yen.

The yen-denominated revenue figures were boosted by exchange rates. Of Sony Music's earnings, about 32 percent, or ¥76.5 billion ($529 million), came from foreign exchange. Both the recorded music and music publishing divisions enjoyed higher revenue from streaming services and paid subscriptions — Spotify's July 2023 price increase and continued subscriber growth across platforms also provided a boost to Universal's recent earnings Music Group and Warner Music Group.

Recorded music revenue of ¥1.07 trillion ($7.39 billion) was up 20.4 percent from a year earlier. While physical revenue fell 7.4% to 101.3 billion yen ($701.7 million), streaming rose 18.5% to 709.5 billion yen ($4.91 billion) and accounted for 66.5 % of recorded music revenue, up from 67.7% in fiscal 2022. The “other” category, which includes merchandise, rose 59.8% to 221.4 billion yen ($1.53 billion).

Other top releases for the financial year were Bad Bunny's; Un Verano Sin TiHarry Styles' Harry's houseby Miley Cyrus Endless summer holidaysLuke Combs' I'm getting oldPeso Pluma's GenesisDoja Cat's RedRod Wave's Nostalgia and Beyoncé Renaissance.

Full-year music publishing revenue rose 18.1 percent to ¥326.7 billion ($2.26 billion). Streaming revenue improved 21.1 percent to 185 billion yen ($1.28 billion) and accounted for 56.6 percent of publishing revenue, up from 55.2 percent in fiscal 2022.

Visual media and platform revenue fell 0.4 percent to 202.1 billion yen ($1.4 billion). Within the division, gaming revenue fell 9.5 percent to 98.2 billion yen ($680 million).

Stray Kids' “Social Path (feat. LiSA)” was the top music release for Sony Music Entertainment Japan for the entire fiscal year. Other top releases in Japan were by King Gnu The Greatest Unknownsixtones The Vibes and two releases from Nogizaka46: Monopoly and Ohtorisama Tengoku.

For the second consecutive quarter, Sony Music's operating income of 301.7 billion yen was the largest of any Sony Corp business. and accounted for about a quarter of the parent company's total operating income. Although Games & Network Services' revenue of 4.26 trillion yen ($29.55 billion) was more than 2.5 times that of Sony Music, it had operating income of 290.2 billion yen ($2 billion) – approx. 4% lower than Sony Music's operating income.

Although Sony Corp.'s revenue for the full year were up about 13% on a constant currency basis, the company is wary of uncertain business conditions and volatility. As such, Sony Music's parent company places greater emphasis on business profits, efficiency and profitability.

During the earnings call, Sony Corp.'s management discussed the company's “mid-range plan” that includes a partial spin-off of its financial services division in October 2025 and an increased focus on growth in its three entertainment segments — music, movies and games, and network services — and its imaging and sensing solutions business . The parent company aims to achieve an annual growth rate of 10% or more in these business areas.

“On the music side, we continue to seek to grow faster than the market by strengthening our efforts in emerging markets, increasing monetization opportunities for our music catalog and integrating adjacent businesses such as merchandising,” he said. Hiroki Totokipresident, COO and CFO.

Ahead of the current fiscal year ending March 31, 2025, Sony Music expects 4% growth in both revenue and operating income.

Sony Music's fourth-quarter revenue rose 23.5 percent to 422.2 billion yen ($2.85 billion). Recorded music revenue in the quarter rose 29.4% to 288 billion yen ($1.94 billion) due to a 23.9% increase in streaming revenue and a 91.9% improvement in the “other” category. Revenue from music publishing rose 25.5 percent to ¥82.9 billion ($558.6 billion). Visual media and platform revenue fell 3.8 percent to 51.4 billion yen ($346.6 million) due to a 22.2 percent decline in game revenue.

Both warning sign and UTOPIA were also Sony Music's top two albums in the fourth fiscal quarter as well as the full year. Other top albums of the quarter were by 21 Savage American Dreamby Beyoncé Cowboy CarterBad Bunny's nadie sabe lo que va pasar mañanaPeso Pluma's GenesisBad Bunny's Un Verano Sin TiTate McRae's Think laterby Justin Timberlake Everything I thought it was and Harry Styles Harry's house.