Sony Group Corp announced on Thursday that it is exploring the possibility of partially spinning off its financial business within the next two to three years. The conglomerate is looking to focus on its entertainment business, which includes games, music, movies, and image sensors.
The potential spin-off would allow the newly listed business to retain the Sony branding. Sony Financial Group, which includes life insurance and banking, reported a 5% drop in annual revenue to 1.45 trillion yen ($10.74 billion) in the year ended March and an operating profit of 223.9 billion yen, up 49% thanks to one-off gains from a real estate sale.
Sony is also working to drive synergies between its different business lines, such as the hit drama “The Last of Us” on HBO which drove uptake of the game franchise it is based on and music used in the show.
Sony shares were up 6% in morning trading in Tokyo. The potential spin-off is part of Sony’s strategy to focus on its entertainment business and drive synergies between its different business lines.