American Depositary Receipts (ADRs) of Sony (SONY) tumbled more than 6% in intraday trading on Wed🗹nesday after the entertainment giant warned the strikes by TV and movie actors and writers will drag down current quarter revenue.

Sony lowered its fiscal 2023 second quarter sales guidance for its Pictures unit by 3%, or 50 billion yen ($350 million). It said the strikes are expected to change the release dates of some film releases and delay deliveries of television series.

Members of the Writers Guild of America (WGA) walked off the job in April, and they were followed in July by those in the Screen Actors Guild-American Federation of Radio and Television Artists (SAG-AFTRA). One of the key issues that led to both job actions was the use of 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) in TV and movies.

In the first quarter, the Picture division's sales dipped 6% to 320.4 billion yen ($2.23 billion), and 澳洲幸运5官方开奖结果体彩网:operating profit slumped 68% to 16 billion yen ($110 million). Sony blamed the declines on a decrease in sales of television content and higher costs becaౠuse of an ༺increased number of movie releases. 

Overall, first quarter operating profit tumbled 31% to 253 billion yen ($1.76 billion) as along with the Pictures unit, the Fiꦕnancial division saw a drop after benefiting from a property sale in 2022. 

Sony ADRs fell to their lowest level in at least six months following the news.