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Sony hikes net profit forecasts as weak yen boosts gaming

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Sony hikes net profit forecasts as weak yen boosts gaming

Sony upgraded its annual net profit forecasts on Thursday, saying it expects strong results in its key gaming sector as the weak yen inflates profits on products sold abroad.

The Japanese electronics and entertainment giant said net profit in the April-December period jumped five percent year-on-year to 809 billion yen ($6.3 billion).

This was partly thanks to strong sales in the game, music and imaging-and-sensors sectors in the third quarter, an important holiday shopping period, the company said.

In the 2022-23 financial year, Sony Group now expects a net profit of 870 billion yen, up from the previous estimate of 840 billion yen.

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Its operating profit forecast is now 1.18 trillion yen, up from 1.16 trillion, with income in the gaming division “expected to be higher than the November forecast mainly due to the positive impact of foreign exchange rates”, the company said.

The Japanese currency has gained ground against the greenback in recent months but the dollar still buys around 128 yen, compared with around 114 yen a year ago.

Sony sold 12.8 million PlayStation 5 units in the first nine months of the current financial year, with 7.1 million of those shifted in October-December.

This year’s figure is already more than the 11.5 million sold in 2021-22, when supply chain problems slowed production of the next-generation console.

“Based on this performance, the company has set its full-year sales forecast for the current fiscal year at 19 million (PS5) units, and will work to sell as many units as possible to meet strong demand by optimising its operations,” chief financial officer Hiroki Totoki told reporters.

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“I believe user engagement is on the road to recovery thanks to the popularity of the PS5, and hit titles” like “God of War Ragnarok”, he said.

Executive reshuffle

Game sales will have an important bearing on Sony’s annual results, Hideki Yasuda of Toyo Securities told AFP.

“Sony is expected to aim for higher hardware sales in the coming fiscal year. What is key is whether software sales will also increase to keep up with higher hardware sales,” Yasuda said.

The PS5 has some major titles in the pipeline, including the “highly anticipated” game “Final Fantasy XVI”, he noted.

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Sony’s gaming rival Microsoft has sparked an industry battle with its acquisition of “Call of Duty” maker Activision Blizzard — a huge $69 billion purchase that has yet to be finalised while it is examined by antitrust authorities.

A year ago, weeks after Microsoft unveiled its acquisition plan, Sony said it would buy US game studio Bungie, creator of hits like “Halo” and “Destiny”.

Sony also announced a reshuffle at the top of the company on Thursday, with chief financial officer Totoki to also become president and chief operating officer.

Current company president and chief executive officer Kenichiro Yoshida will become board chairman and remain CEO.

The yen’s fall was helped by the contrast between the US Federal Reserve’s interest rate hikes and the Bank of Japan’s longstanding monetary easing programme.

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“Sony has a wide range of businesses, so the impact of foreign exchange changes are unevenly felt in various areas,” Yasuda said.

The company said sales in its pictures division were expected to be lower than previously forecast, partly because of “the impact of foreign exchange rates” which make it more expensive to produce films abroad. 

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Over 70pc global workforce faces climate change risks: ILO

Over 70pc global workforce faces climate change risks: ILO

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Over 70pc global workforce faces climate change risks: ILO

More than 70 per cent of the global workforce is exposed to risks linked to climate change that cause hundreds of thousands of deaths each year, the International Labour Organisation (ILO) said on Monday, adding governments would need to act as the numbers rise.

Workers, especially the world’s poorest, are more vulnerable than the general population to the dangers of climate extremes [extreme weather events] such as heatwaves, droughts, wildfires, and hurricanes because they are often the first exposed, or exposed for longer periods and at greater intensity.

Read more: Heat, disease, air pollution: How climate change impacts health

As climate change accelerates, governments and employers are struggling to protect employees, the ILO said in a report.

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“A staggering number of workers are already being exposed to climate change-related hazards in the workplace, and these figures are only likely to get worse,” the report entitled “Ensuring safety and health at work in a changing climate” said in its conclusions.

“As (the hazards) evolve and intensify, it will be necessary to re-evaluate existing legislation or create new regulations and guidance.”

Some countries have improved heat protections for workers, such as Qatar, whose policies came under scrutiny ahead of the 2022 soccer World Cup.

However, rules to govern other dangers like growing pesticide use for agricultural workers are less common.

Read more more: Climate change affecting women, especially those working in agri sector, disproportionally in countries like Pakistan

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“We do have some (countries) that already limit exposure to high temperatures and also limit exposure to air pollution, but we rarely have occupational exposure limits set for the other hazards,” said Manal Azzi, ILO Senior Specialist on occupational safety and health.

Read more: Lahore and Chingchi effects: Noise at workplace has serious effects on your health

The share of global workers exposed to the most widespread hazard, rising temperatures, has risen by around 5 percentage points over the last two decades to 70.9 per cent, the report said,

Other climate dangers often co-exist, creating a “cocktail of hazards,” the report said, with UV radiation and air pollution each affecting 1.6 billion people.

Read more: Climate change hits Asia hardest, below-normal rains in Hindu Kush range of Pakistan: UN

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Because a worker is likely to be exposed to multiple dangers at once, an ILO spokesperson said it was impossible to calculate exactly what portion of the 3.4 billion global workforce was at risk.

Climate-related hazards are being linked to a cancer, kidney dysfunction, and respiratory illnesses, leading to deaths or debilitating chronic conditions or disabilities.

Air pollution is the most deadly risk, causing some 860,000 work-related deaths among outdoor workers annually, the ILO report said. Excessive heat causes 18,970 occupational deaths each year and UV radiation kills 18,960 through non melanoma skin cancer, it said.

Read more: Pakistan among six nations bearing the brunt of pollution health burden

“The greatest impacts will be felt by the working poor, those working in the informal economy, seasonal workers and workers in micro and small enterprises,” the report said.

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In some cases, the very technologies meant to slow climate change like solar panels and lithium-ion batteries for electric vehicles can end up producing new dangers since they contain toxic chemicals, it said.

The ILO plans a major meeting in 2025 of government, employer and worker representatives to provide policy guidance on climate hazards.

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India sugar demand surges in heatwave and election season

India sugar demand surges in heatwave and election season

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India sugar demand surges in heatwave and election season

 Indian sugar consumption this year is poised to hit a record high as demand during the peak summer season gets a boost from heatwaves and the mobilisation of millions for elections in the scorching temperatures.

Higher consumption would lift local prices and boost margins of sugar producers such as Balrampur Chini, Shree Renuka Sugars, Bajaj Hindusthan and Dwarikesh Sugar, and help them in making cane payments on time to farmers.

Consumption of cold drinks and ice cream, and as a result demand for sugar, rises in India during the summer months roughly from mid-March to mid-June.

But this year demand is above average as heatwaves and election rallies boost consumption of ice-cream and soft drinks, said Avantika Saraogi, executive director at Balrampur Chini Mills.

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Maximum temperatures in many parts of India have risen above 40 degrees Celsius, and the weather department has forecasted that the country is likely to experience more heatwave days than normal between April and June.

Read more: India braces for heatwaves with impact seen on inflation, election 

During the harsh summer, India is hosting the world’s largest election, in which nearly a billion people will be eligible to vote.

Political parties hold huge rallies, some attended by as many as 200,000 people, undeterred by the sweltering heat, which only intensifies as the campaign picks up pace.

Earlier this week, following an energetic election rally at Pune in the scorching afternoon sun, dedicated workers of a political party flocked to a nearby restaurant to quench their thirst with refreshing soft drinks.

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“It’s sweltering out there. We need something icy to keep us going in this heat,” said Mahesh Pawar, one of the workers.

“We’re grateful to our leader for providing us with these refreshing beverages to keep our spirits high.”

SWEET SUMMER

Indian sugar consumption in during April-June could rise to 7.5 million tons, up 5 per cent from a year ago, said a Mumbai-based dealer with a global trade house.

This year’s unusual rise in consumption is temporary, with demand growth returning to a normal pace next year, said Prakash Naiknavare, managing director of the National Federation of Cooperative Sugar Factories Ltd.

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“But right now the industry is experiencing an unusual boost in demand. This is expected to lift total consumption this year to a record 29 million metric tons,” Naiknavare said.

India’s sugar consumption in the 2022-23 marketing year, which ended on Sept 30, stood at 27.85 million tons.

Higher demand has already begun lifting sugar prices, which have risen nearly 3pc in a fortnight.

The government has allocated a higher quota for April compared to last year, but prices are still rising due to robust demand from bulk consumers, said Ashok Jain, president of the Bombay Sugar Merchants Association.

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Refineries against fuel price deregulation which Ogra says will boost competition

Refineries against fuel price deregulation which Ogra says will boost competition

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Refineries against fuel price deregulation which Ogra says will boost competition

Pakistan’s plans to deregulate fuel prices could lead refiners to halt planned upgrades worth up to $6 billion and force some refineries to close, some of the country’s top refiners said in a letter to the country’s oil regulator.

Looking to drive down prices for consumers, the South Asian nation’s Oil & Gas Regulatory Authority (Ogra) has proposed that oil marketers and refineries be allowed to set fuel prices, instead of the government setting prices.

As part of the change, Ogra proposed scrapping or reviewing a rule that requires fuel buyers to purchase supply from local refineries, another issue the refiners said could result in “disastrous consequences”.

The refiners – state-run Pakistan Refinery and private domestic refiners Pak Arab Refinery, Attock Refinery, Cnergyico and National Refinery – said they were already struggling to operate near full capacity, and asked that they be consulted before the implementation of “irrational recommendations”.

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“The refining sector requires Ogra support through pragmatic and supportive measures, rather than suggesting ways that if implemented would result in their permanent closure,” the refiners told Ogra on Monday in a letter, which was reviewed by Reuters.

The deregulation was aimed at boosting competition and protecting the public interest, Ogra told Reuters in a statement on Tuesday, but did not respond to specific questions on the letter from the refiners. However, it said in an April 17 presentation reviewed by Reuters the potential impact of deregulation on refinery upgrades had to be assessed carefully, calling it a challenge.

“The refineries upgradation will bring in investment of $5-6 billion and not only result in cleaner environment-friendly fuels but also result in savings of precious foreign exchange of the country,” the refiners wrote in the letter to Ogra. 

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