TOKYO, Japan (CelebrityAccess) — Sony Music Entertainment reported near record-breaking profits in 2022, with music streaming driving growth in both revenue and profits for the label group.
According to financial filings from Sony, the company’s music division reported revenue of ¥1.38 trillion yen (about $10.1 billion USD) for the fiscal year ending on Marc 31st, 2023, which improved on the previous year’s results by 24%.
Sony attributed the strong performance of their music division to higher revenues from paid subscription streaming services and the effects of foreign currency exchanges.
Operating income for music operations also improved significantly during the fiscal year, increasing by ¥52.2 billion yen year-on-year to ¥263.1 billion yen (roughly $1.93bn USD). Results were bolstered by strong performance in streaming music and currency exchange rates, as well as the impact of litigation settlements, which, after expenses, accounted for ¥5.7 billion yen. At the same time, sales for visual media and platform weighed on the results, Sony said.
“In Recorded Music and Music Publishing, we aim to continue to grow faster than the market and maintain a higher growth rate and profit margin than our competitors by strengthening relationships with influential artists, discovering and nurturing new talent, expanding our lineup through The Orchard and AWAL, and growing our business in emerging markets,” stated Sony’s Chief Financial Officer Hiroki Totoki during a conference call with investors.
“We have steadily improved our ability to continuously create hits, and in Recorded Music, an average of 43 songs ranked in the Spotify weekly global top 100 songs in FY22, increasing our market share significantly year-on-year,” Totoki added.
