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Sony announces first-ever share buyback, stock rises five percent

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Reuters TOKYO
Last Updated : Feb 08 2019 | 6:35 AM IST

TOKYO (Reuters) - Sony Corp announced on Friday a share buyback of 100 billion yen ($910 million) - its first ever aimed at boosting shareholder returns - sending the Japanese electronics and entertainment company's shares up more than 5 percent.

Sony said the buyback, to be conducted through March 22, would be equivalent to 2.36 percent of its outstanding stock.

"Our financial health has improved enough to conduct the repurchases," a Sony spokesman said, as the company reinvented itself as an entertainment company with stable revenue from music content and gaming, after battling years of losses with price-competitive consumer electronics.

The spokesman said Sony also took into account current share price levels.

Sony shares had plunged 14 percent this week after the company reported lower-than-expected profit as its previously thriving gaming business sagged, though a one-off gain related to its acquisition of EMI nevertheless pushed the quarterly result to a record high.

Sony's announcement comes a day after SoftBank Group Corp's shares jumped 17 percent after the Japanese tech investment giant unveiled a record share buyback.

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(Reporting by Makiko Yamazaki; Editing by Chang-Ran Kim and Christopher Cushing)

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First Published: Feb 08 2019 | 6:27 AM IST

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