Sony Group Corp. announced on Wednesday that it is planning to buy back 2.03% of its shares over the next 12 months. The company is expected to spend approximately ¥200 billion ($1.5 billion) to buy back a maximum of 25 million shares.
By making this buyback decision, Sony is joining a growing list of Japanese companies that have executed buyback campaigns in recent weeks. Shares in the company rose 0.6% following Wednesday’s announcement, with the tech giant reaching a 52-week high earlier in the week.
The decision to buy back a portion of its shares comes as little surprise given Sony’s share buyback trend in recent years. The company bought back ¥200 billion in share purchase programs in 2021 and 2022.
Sony expects this financial year to be a challenging one, warning at its quarterly earnings that it has forecasted that it will sell fewer Playstation Studios games than it did in previous years. Currently the world’s largest maker of smartphone image sensors, Sony expects this market to remain depressed for the remainder of 2023 as well.
The buyback plan follows in the footsteps of Mitsui & Co., Hitachi Ltd., and Tokyo Gas Co.; all of whom announced plans to buy back some of their shares this year.