Sony Interactive Entertainment New Zealand Limited has reported higher profits for the financial year ended 31 March 2025, buoyed by stronger revenues, despite a decline in cash holdings and higher administrative expenses.
The company, which manages sales, marketing and distribution of PlayStation products across New Zealand, posted revenue of NZ$67.3 million, an increase from NZ$64.1 million in the previous year. Profit before income tax rose to NZ$1.67 million, compared with NZ$1.27 million a year earlier, while net profit after tax climbed to NZ$1.22 million, up from NZ$937,000.
The growth came against a backdrop of rising costs. Cost of sales rose to NZ$62.2 million from NZ$58.7 million, while general and administrative expenses expanded to NZ$294,000, up from NZ$213,000. Marketing expenses decreased sharply, falling to NZ$738,000 from NZ$1.24 million, signalling tighter control over promotional outlays. Freight and distribution charges were broadly stable at NZ$1.12 million, compared with NZ$1.15 million in 2024.
Finance costs also fell year-on-year, dropping to NZ$475,000 from NZ$731,000, reflecting lower related-party borrowing costs as interest rates eased. Employee benefit expenses edged slightly lower to NZ$952,000, compared with NZ$965,000 the previous year.
The company’s financial position showed total assets of NZ$15.7 million, down from NZ$18.7 million in 2024. Current assets fell to NZ$15.6 million from NZ$18.6 million, with cash reserves declining to NZ$1.9 million from NZ$3.5 million. Trade and other receivables also fell, to NZ$3.9 million from NZ$5 million. Inventories remained broadly stable at NZ$9.7 million compared with NZ$9.8 million.
Liabilities fell significantly, with current borrowings reducing to NZ$4.9 million from NZ$7.8 million. Total current liabilities were NZ$10.9 million, compared with NZ$15.1 million in the prior year, supporting an improvement in net assets to NZ$4.8 million from NZ$3.6 million. Retained earnings rose to NZ$4.83 million from NZ$3.61 million, reflecting the stronger profit performance. No dividend was declared for the year, continuing the position from 2024.
The company reported positive operating cash flows of NZ$1.3 million, reversing the NZ$528,000 outflow recorded in 2024. However, overall cash decreased due to net outflows from financing activities, which included repayments of related party loans. Proceeds from loans with related entities stood at NZ$59.6 million, with repayments of NZ$62.5 million, resulting in a net financing outflow of NZ$2.9 million.
In related party transactions, Sony Interactive Entertainment New Zealand recorded purchases of trading stock and services totalling NZ$61.4 million from entities within the Sony Group, while sales to related parties reached just over NZ$1 million. Interest expenses of NZ$475,000 were also incurred on loans from related entities. The company confirmed that all transactions were conducted on normal commercial terms.
The audit, conducted by PricewaterhouseCoopers, concluded that the financial statements gave a true and fair view of the company’s performance and position in line with New Zealand accounting standards.
There were changes at the board level during the year. Director Rebecca McCormack stepped down in June 2025, with Tomonori Kimura appointed on the same date. The board at year-end comprised Goncalo Fialho and Kimura, who signed off the financial report on 28 July 2025.
The directors stated that no subsequent events had arisen since year-end that would materially impact the company’s financial position.
Overall, Sony Interactive Entertainment New Zealand delivered stronger earnings in 2025 on the back of revenue growth and reduced financing costs, although its cash reserves and total assets fell. The company enters the new financial year with improved equity, but with a leaner balance sheet and continuing reliance on related party financing.
