Sony Group Corp. plans a buyback of up to 2.03% of its shares over the next twelve months, after warning of headwinds ahead from a slump in global consumer spending.
Tokyo-based Sony joins a long list of Japanese firms executing buybacks in recent weeks. The electronics and entertainment firm said it will spend as much as ¥200 billion ($1.5 billion) to buy a maximum of 25 million of its shares.
Sony’s stock price reached a 52-week high this week, amid a wider rally in Japanese stocks. Its shares closed up 0.6% ahead of the announcement Wednesday.
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Share buybacks in Japan remain at record levels, with investors expecting more to follow as the country’s stock exchange pushes companies to lift their market values. Meanwhile buybacks in the US have slowed. Companies from trading house Mitsui & Co. to industrial conglomerate Hitachi Ltd. to utilities firm Tokyo Gas Co. have announced plans to purchase their own shares this year.
For Sony, Wednesday’s move continues a string of buybacks it’s done in recent years. The PlayStation game console maker also announced ¥200 billion share purchase programs in 2022 and 2021.
The company warned at its earnings results last month it would sell fewer PlayStation Studios games this fiscal year. The world’s largest maker of smartphone image sensors expects the global mobile market to remain depressed for the next year, according to Chief Operating Officer Hiroki Totoki.
(Updates with background on buybacks in Japan from the fourth paragraph)
