Sony Interactive Entertainment NZ posts higher profit

Sony Interactive Entertainment New Zealand reported a higher profit for the year ended 31 March 2026, despite a decline in revenue.

Revenue from contracts with customers declined 6.7% to NZD $62.837 million, down from NZD $67.347 million a year earlier. Despite the lower revenue, profit before income tax rose to NZD $1.749 million from NZD $1.673 million.

Profit for the year rose to NZD $1.281 million, up from NZD $1.222 million.

The company is responsible for the sales, marketing and distribution of the PlayStation family of products in New Zealand.

Costs fall 

The decline in revenue was accompanied by lower cost of sales.

Cost of sales fell to NZD $57.889 million, from NZD $62.162 million in the previous year. Employee benefits expense increased slightly to NZD $999,000, compared with NZD $952,000. Freight and distribution charges fell to NZD $924,000 from NZD $1.122 million.

General and administrative expenses were broadly stable at NZD $306,000, compared with NZD $294,000. Marketing expenses increased to NZD $802,000 from NZD $738,000.

Finance costs fell to NZD $192,000, compared with NZD $475,000 a year earlier.

The lower finance costs helped offset some of the pressure from the decline in revenue.

Cash position

Cash and cash equivalents increased during the year. The company held NZD $3.529 million in cash at 31 March 2026, compared with NZD $1.899 million at the same point in 2025.

However, operating cash flow weakened significantly. Net cash outflow from operating activities was NZD $2.376 million, compared with a net inflow of NZD $1.329 million in the previous year. Cash generated from operations was negative NZD $1.958 million, compared with positive NZD $2.263 million in 2025.

The company received NZD $59.306 million from a related party loan during the year and repaid NZD $55.300 million. That resulted in a net financing cash inflow of NZD $4.006 million.

Combined operating and financing movements increased cash by NZD $1.630 million during the year.

Balance sheet

Total assets increased to NZD $18.464 million at 31 March 2026, from NZD $15.745 million.

Current assets rose to NZD $18.351 million from NZD $15.619 million. Trade and other receivables increased to NZD $5.296 million from NZD $3.888 million. Inventories declined slightly to NZD $9.431 million from NZD $9.696 million.

Current liabilities increased to NZD $12.355 million, compared with NZD $10.917 million.

Borrowings rose to NZD $8.935 million from NZD $4.929 million. Contract liabilities, meanwhile, fell to NZD $1.505 million from NZD $2.587 million.

Equity growth

Net assets increased to NZD $6.109 million at the end of the financial year, compared with NZD $4.828 million a year earlier. Retained earnings rose to NZD $6.108 million from NZD $4.827 million.

The company reported no other comprehensive income during the year.

The financial statements were prepared in New Zealand dollars, which the company identifies as its functional and presentation currency.

Sony Interactive Entertainment New Zealand's annual report covers the financial year from 1 April 2025 to 31 March 2026.