The electronics and entertainment firm posted April-June profit of 228.4 billion yen ($2.15 billion), beating the 143.21 billion yen average of 10 analyst estimates compiled by Refinitiv.
The firm also forecast profit to fall 26.7% to 620 billion yen in the year through March 2021, its lowest in four years, but better than a drop of at least 30% it estimated in May.
The impact of the novel coronavirus on Sony has been limited compared with Japanese electronics peers such as Panasonic Corp due to its pursuit of recurring revenue such as subscription fees on gaming content.
To accelerate the portfolio shift to such revenue streams, Sony recently invested in Chinese video site Bilibili Inc and Epic Games, creator of the popular video game Fortnite.
Sony forecast profit at its gaming business to rise marginally to 240 billion yen for this financial year, driven by a sharp rise in software sales in tandem with its PlayStation 5 console launch during the year-end holiday shopping season.
It expects all other business segments to suffer lower profit, including a 45% drop to 130 billion yen in its image sensor business.
Sony, which supplies camera sensors to global smartphone makers including Apple Inc and Huawei Technologies Co Ltd, will cut its three-year sensor investment plan through March 2021 by 50 billion yen to 650 billion yen, Totoki said.
The worldwide smartphone market is forecast to decline 12% year over year in 2020, showed data from researcher IDC.
Sony's share price has risen 17% this year to its highest in nearly two decades, in a vote of confidence for Chief Executive Kenichiro Yoshida's ability to maintain momentum after a turnaround led by his predecessor.
Sony also on Tuesday said it would buy back up to 100 billion yen or 1.64% worth of its own shares.
($1 = 106.0600 yen)
(Reporting by Makiko Yamazaki; Editing by Christopher Cushing)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.