Sony Pictures Entertainment profits down 10% following Hollywood strikes

The Wheel Of Time

Sony Pictures Entertainment (SPE) profits fell by almost 10% over the past year, with revenues from TV declining by $200m.

The Japan-based company said the profit hit was caused by the US writers strike and associated delays in production, with SPE’s profits dropping to $808m in the 12 months to 31 March, down from $894m a year earlier.

For All Mankind

SPE, which includes TV productions, its film arm and media networks, reported revenue slightly up from $10.14bn to $10.32bn.

The studio said the production hiatus last year had pushed profits down by around Y18bn ($115m) in 2023, with “the negative impact of the strikes on profitability” set to peak in its 2024 full year results.

That cost has been estimated at Y34bn ($217m) and already been incorporated into forecasts.

Sony’s TV production revenues, which derive from shows ranging from For All Mankind for Apple TV+ and Prime Video’s The Wheel Of Time to Netflix’s The Crown, were down to $3.81bn from $3.98bn a year earlier.

However, Sony reported revenue rising from $883m to $961m in the most recent fourth quarter, aided by ongoing stalwarts such as Shark Tank and Days Of Our Lives.

Revenue from Sony’s media networks rose slightly from $2.69bn to $2.72bn, while its anime streamer Crunchyroll is expected to provide increasing revenues following subscription growth.

Across the group, Sony reported a 7% drop in profits on revenues of $83bn.