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Tag: 22 Jump Street

  • Q3-2016: Sony mobiles & devices div offset gains from games & pictures segments

    Q3-2016: Sony mobiles & devices div offset gains from games & pictures segments

    BENGALURU: Sony Corporation reported almost flat (up 0.5 per cent) YoY sales and operating revenue (sales revenue) in the quarter ended 31 December, 2015 (Q3-2015, current quarter). However, net income attributable to stockholders (net income) was 23 per cent higher YoY. Sony reported sales of  ?2580.8 billion as compared to the ?2466.7 billion in Q3-2015. The company reported net income attributable to Sony shareholders of ?95.25 billion in Q3-2016 as compared to f ?79.96 billion in the corresponding year ago quarter.

     

    Sony says that sales were essentially flat YoY mainly due to due to increases in Game & Network Services (G&NS) segment sales, reflecting a significant increase in PlayStation4 (PS4) software sales, and in Pictures segment sales, reflecting a significant increase in Motion Pictures sales, substantially offset by decreases in Mobile Communications (MC) segment sales, reflecting a significant decrease in smartphone unit sales, and in Devices segment sales, primarily reflecting a significant decrease in image sensor sales. On a constant currency basis, sales were essentially flat year-on-year says the company.

     

    Segment Performance

     

    Mobile Communications

    Sony’s MC segment reported a 14.7 per cent decline in sales to ?384.5 billion in the current quarter as compared to the ?450.9 billion in Q3-2015, which Sony says was due to a significant decrease in smartphone unit sales resulting from a strategic decision not to pursue scale in order to improve profitability.

     

    Consequently the segment reported a higher operating profit of ?24.1 billion in Q3-2016 as compared to ?10.4 billion in Q3-2015. Sony says that this was due to an improvement in product mix reflecting a shift to high value-added models, as well as reductions in costs including marketing, research and development and other selling, general and administrative expenses, partially offset by the above-mentioned decrease in smartphone unit sales and the negative impact of the appreciation of the US dollar, reflecting the high ratio of US dollar-denominated costs.

     

    Game & Network Services (G&NS)

    GN&S segment reported a 10.5 per cent increase in sales to ?531.5 billion in Q3-2016 as compared to the ?309.5 million in Q3-2015, which Sony says was primarily due to an increase in PS4 software sales as well as the impact of foreign exchange rates, partially offset by a decrease in PlayStation3 (PS3) software sales.

     

    This segment’s Operating Income increased 45.5 per cent to ?40.2 billion in Q3-2016 as compared to the ?27.6 billion in Q3-2015. The gain due to to the increase in PS4 software sales as well as the absence in the current quarter of an 11.2 billion yen write-down of PS Vita and PS TV components recorded in the same quarter of the previous fiscal year. Partially offsetting the increase in operating income were the negative impact of the appreciation of the US dollar, reflecting the high ratio of US dollar-denominated costs, and the decrease in PS3 software sales.

     

    Imaging Products & Solutions (IP&S)

    IP&S segment reported a five per cent decline in sales to ?191.9 billion in the current quarter as compared to the ?201.9 billion in Q3-2015 due to decreases in unit sales of video cameras and digital cameras reflecting a contraction of the market, partially offset by an improvement in the product mix of digital cameras reflecting a shift to high value-added models.

     

    IP&S operating income increased 28.6 per cent to ?25.9 billion in Q3-2016 as compared to the ?20.1 billion in Q3-2015. During the current quarter there was a 1.9 billion yen positive impact from foreign exchange rate fluctuations says Sony.

     

    Home Entertainment & Sound (HE&S)

    Sony’s HE&S segment reported 4.3 per cent decline in revenue to ?402.2 billion in the current quarter as compared to the ?420.2 billion in Q3-2015 due to a decrease in unit sales of LCD televisions, and a decrease in home audio and video unit sales, reflecting a contraction of the market, as well as the impact of foreign exchange rates, partially offset by an improvement in the product mix of LCD televisions, reflecting a shift to high value-added model.

     

    HE&S operating income reported 19.8 per cent growth in operating income to ?31.2 billion in Q3-2016 as compared to the ?26 billion in Q3-2015 reductions and an improvement in product mix, partially offset by the negative impact of the appreciation of the US dollar, reflecting the high ratio of US dollar-denominated costs, as well as the impact of the above-mentioned decrease in sales.

     

    In Television, sales were flat YoY as ?288.5 billion. This was primarily due to a decrease in LCD television unit sales resulting from a strategic decision not to pursue scale in order to improve profitability and the impact of foreign exchange rates, substantially offset by the improvement in product mix reflecting a shift to high value-added models. Operating income increased ?6.6 billion yen YoY to ?15.9 billion. This increase was primarily due to cost reductions and the improvement in product mix, partially offset by the negative impact of the appreciation of the US dollar, reflecting the high ratio of US dollar-denominated costs, and the impact of the decrease in unit sales.

     

    Devices

    Devices Sales reduced 12.6 per cent YoY to ?249.9 billion in the current quarter from ?285.9 billion. This increase was primarily due to the impact of foreign exchange rates and an increase in demand for image sensors, partially offset by a decrease in battery business sales. Sales to external customers increased 17.3 per cent YoY.

     

    Operating income of the segment in Q3-2016 increased ?4.4 billion YoY to ?32.7 billion from ?28.3 billion in Q3-2015. This decrease was primarily due to a significant decrease in sales of image sensors, reflecting a decrease in demand for mobile products, and a significant decrease in battery business sales. This sales decrease was partially offset by an increase in sales of camera modules, which were lower than originally forecasted and the impact of foreign exchange rates. Sales to external customers decreased 7.5 per cent year-on-year.

     

    The segment reported an operating loss of ?11.7 billion in the current quarter as compared to an operating profit of ?53.8 billion in Q3-2015. This deterioration was primarily due to the deterioration in the operating results of the battery business, including the recording of a ?30.6 billion impairment charge related to long-lived assets, increases in depreciation and amortisation expenses as well as in research and development expenses for image sensors and camera modules, and the impact of the decrease in sales of image sensors.

     

    Pictures

    Sony’s Pictures segment reported 26.9 per cent growth in sales to ?262.1 billion in Q3-2016 as compared to the ?206.6 billion in Q3-2015. The increase in sales on a US dollar basis was primarily due to significantly higher sales for Motion Pictures, partially offset by the impact of foreign exchange rates. The increase in Motion Pictures sales was primarily driven by higher theatrical revenues, as the current quarter benefitted from the strong worldwide theatrical performances of Spectre and Hotel Transylvania 2, partially offset by lower home entertainment revenues, as the same quarter of the previous fiscal year benefitted from the home entertainment performances of 22 Jump Street and The Equalizer.

     

    Operating income in the current quarter more than tripled (3.27 time) at ?20.4 billion YoY from ?6.2 billion from ?1 billion in Q3-2014 due to the impact of the above-mentioned increase in sales, partially offset by higher theatrical marketing expenses. The increase in operating income also reflects lower overhead expenses as compared to the same quarter of the previous fiscal year, primarily due to a reduction in incentive compensation expense as well as insurance recoveries related to losses incurred from the cyberattack on SPE’s network and IT infrastructure in the fall of 2014.

     

    Music

    Music reported 8.2 per cent increase in sales to ?18.1 billion in Q3-2016 as compared to the ?167.5 billion in Q3-2015 due to the impact of the depreciation of the yen against the US dollar. Sony says that the increase in sales on a constant currency basis was due to higher Recorded Music sales, reflecting an increase in digital streaming revenue, and higher Visual Media and Platform sales, reflecting the strong performance of a game application for mobile devices. The current quarter includes record-breaking sales of Adele’s new album 25. Other best-selling titles included One Direction’s Made in the A.M., Elvis Presley’s If I Can Dream: Elvis Presley with the Royal Philharmonic Orchestra and Bruce Springsteen’s The Ties That Bind: The River Collection.

     

    Operating income increased ?1.5 billion year-on-year to ?27.4 billion ($228 million). This increase was primarily due to the above-mentioned increase in sales in Recorded Music and Visual Media and Platform.

     

    Operating income increased ?2.4 billion to ?14.6 billion. This increase was primarily due to an improvement in product mix, reflecting an increase in digital streaming revenues says Sony.

     

    Financial services

    Financial services increased 5.6 per cent YoY to ?322.0 billion primarily due to an increase in revenue at Sony Life. Revenue at Sony Life increased 5.7 per cent year-on-year to ?295.0 billion mainly due to an increase in insurance premium revenue reflecting a steady increase in policy amount in force.

     

    Operating income of ?52.2 billion was recorded, essentially flat YoY. At Sony Life, operating income of ?51.6 billion was recorded, essentially flat YoY, mainly due to the above-mentioned increase in insurance premium revenue, substantially offset by an increase in operating expenses.

     

    Other

    Sales decreased 17.7 per cent YoY in Q3-2016 to ?5196.8 billion.

    Operating income of ?515.7 billion was recorded in Q3-2016, compared to an operating loss of ?5112.6 billion in the same quarter of the previous fiscal year. This improvement was primarily due to a decrease in PC exit costs, including restructuring charges and after-sales service expenses, as well as the absence in the current quarter of sales company fixed costs charged to the PC business in the same quarter of the previous fiscal year, which were allocated based on the prior year results says Sony.

     

  • Q3-2016: Sony mobiles & devices div offset gains from games & pictures segments

    Q3-2016: Sony mobiles & devices div offset gains from games & pictures segments

    BENGALURU: Sony Corporation reported almost flat (up 0.5 per cent) YoY sales and operating revenue (sales revenue) in the quarter ended 31 December, 2015 (Q3-2015, current quarter). However, net income attributable to stockholders (net income) was 23 per cent higher YoY. Sony reported sales of  ?2580.8 billion as compared to the ?2466.7 billion in Q3-2015. The company reported net income attributable to Sony shareholders of ?95.25 billion in Q3-2016 as compared to f ?79.96 billion in the corresponding year ago quarter.

     

    Sony says that sales were essentially flat YoY mainly due to due to increases in Game & Network Services (G&NS) segment sales, reflecting a significant increase in PlayStation4 (PS4) software sales, and in Pictures segment sales, reflecting a significant increase in Motion Pictures sales, substantially offset by decreases in Mobile Communications (MC) segment sales, reflecting a significant decrease in smartphone unit sales, and in Devices segment sales, primarily reflecting a significant decrease in image sensor sales. On a constant currency basis, sales were essentially flat year-on-year says the company.

     

    Segment Performance

     

    Mobile Communications

    Sony’s MC segment reported a 14.7 per cent decline in sales to ?384.5 billion in the current quarter as compared to the ?450.9 billion in Q3-2015, which Sony says was due to a significant decrease in smartphone unit sales resulting from a strategic decision not to pursue scale in order to improve profitability.

     

    Consequently the segment reported a higher operating profit of ?24.1 billion in Q3-2016 as compared to ?10.4 billion in Q3-2015. Sony says that this was due to an improvement in product mix reflecting a shift to high value-added models, as well as reductions in costs including marketing, research and development and other selling, general and administrative expenses, partially offset by the above-mentioned decrease in smartphone unit sales and the negative impact of the appreciation of the US dollar, reflecting the high ratio of US dollar-denominated costs.

     

    Game & Network Services (G&NS)

    GN&S segment reported a 10.5 per cent increase in sales to ?531.5 billion in Q3-2016 as compared to the ?309.5 million in Q3-2015, which Sony says was primarily due to an increase in PS4 software sales as well as the impact of foreign exchange rates, partially offset by a decrease in PlayStation3 (PS3) software sales.

     

    This segment’s Operating Income increased 45.5 per cent to ?40.2 billion in Q3-2016 as compared to the ?27.6 billion in Q3-2015. The gain due to to the increase in PS4 software sales as well as the absence in the current quarter of an 11.2 billion yen write-down of PS Vita and PS TV components recorded in the same quarter of the previous fiscal year. Partially offsetting the increase in operating income were the negative impact of the appreciation of the US dollar, reflecting the high ratio of US dollar-denominated costs, and the decrease in PS3 software sales.

     

    Imaging Products & Solutions (IP&S)

    IP&S segment reported a five per cent decline in sales to ?191.9 billion in the current quarter as compared to the ?201.9 billion in Q3-2015 due to decreases in unit sales of video cameras and digital cameras reflecting a contraction of the market, partially offset by an improvement in the product mix of digital cameras reflecting a shift to high value-added models.

     

    IP&S operating income increased 28.6 per cent to ?25.9 billion in Q3-2016 as compared to the ?20.1 billion in Q3-2015. During the current quarter there was a 1.9 billion yen positive impact from foreign exchange rate fluctuations says Sony.

     

    Home Entertainment & Sound (HE&S)

    Sony’s HE&S segment reported 4.3 per cent decline in revenue to ?402.2 billion in the current quarter as compared to the ?420.2 billion in Q3-2015 due to a decrease in unit sales of LCD televisions, and a decrease in home audio and video unit sales, reflecting a contraction of the market, as well as the impact of foreign exchange rates, partially offset by an improvement in the product mix of LCD televisions, reflecting a shift to high value-added model.

     

    HE&S operating income reported 19.8 per cent growth in operating income to ?31.2 billion in Q3-2016 as compared to the ?26 billion in Q3-2015 reductions and an improvement in product mix, partially offset by the negative impact of the appreciation of the US dollar, reflecting the high ratio of US dollar-denominated costs, as well as the impact of the above-mentioned decrease in sales.

     

    In Television, sales were flat YoY as ?288.5 billion. This was primarily due to a decrease in LCD television unit sales resulting from a strategic decision not to pursue scale in order to improve profitability and the impact of foreign exchange rates, substantially offset by the improvement in product mix reflecting a shift to high value-added models. Operating income increased ?6.6 billion yen YoY to ?15.9 billion. This increase was primarily due to cost reductions and the improvement in product mix, partially offset by the negative impact of the appreciation of the US dollar, reflecting the high ratio of US dollar-denominated costs, and the impact of the decrease in unit sales.

     

    Devices

    Devices Sales reduced 12.6 per cent YoY to ?249.9 billion in the current quarter from ?285.9 billion. This increase was primarily due to the impact of foreign exchange rates and an increase in demand for image sensors, partially offset by a decrease in battery business sales. Sales to external customers increased 17.3 per cent YoY.

     

    Operating income of the segment in Q3-2016 increased ?4.4 billion YoY to ?32.7 billion from ?28.3 billion in Q3-2015. This decrease was primarily due to a significant decrease in sales of image sensors, reflecting a decrease in demand for mobile products, and a significant decrease in battery business sales. This sales decrease was partially offset by an increase in sales of camera modules, which were lower than originally forecasted and the impact of foreign exchange rates. Sales to external customers decreased 7.5 per cent year-on-year.

     

    The segment reported an operating loss of ?11.7 billion in the current quarter as compared to an operating profit of ?53.8 billion in Q3-2015. This deterioration was primarily due to the deterioration in the operating results of the battery business, including the recording of a ?30.6 billion impairment charge related to long-lived assets, increases in depreciation and amortisation expenses as well as in research and development expenses for image sensors and camera modules, and the impact of the decrease in sales of image sensors.

     

    Pictures

    Sony’s Pictures segment reported 26.9 per cent growth in sales to ?262.1 billion in Q3-2016 as compared to the ?206.6 billion in Q3-2015. The increase in sales on a US dollar basis was primarily due to significantly higher sales for Motion Pictures, partially offset by the impact of foreign exchange rates. The increase in Motion Pictures sales was primarily driven by higher theatrical revenues, as the current quarter benefitted from the strong worldwide theatrical performances of Spectre and Hotel Transylvania 2, partially offset by lower home entertainment revenues, as the same quarter of the previous fiscal year benefitted from the home entertainment performances of 22 Jump Street and The Equalizer.

     

    Operating income in the current quarter more than tripled (3.27 time) at ?20.4 billion YoY from ?6.2 billion from ?1 billion in Q3-2014 due to the impact of the above-mentioned increase in sales, partially offset by higher theatrical marketing expenses. The increase in operating income also reflects lower overhead expenses as compared to the same quarter of the previous fiscal year, primarily due to a reduction in incentive compensation expense as well as insurance recoveries related to losses incurred from the cyberattack on SPE’s network and IT infrastructure in the fall of 2014.

     

    Music

    Music reported 8.2 per cent increase in sales to ?18.1 billion in Q3-2016 as compared to the ?167.5 billion in Q3-2015 due to the impact of the depreciation of the yen against the US dollar. Sony says that the increase in sales on a constant currency basis was due to higher Recorded Music sales, reflecting an increase in digital streaming revenue, and higher Visual Media and Platform sales, reflecting the strong performance of a game application for mobile devices. The current quarter includes record-breaking sales of Adele’s new album 25. Other best-selling titles included One Direction’s Made in the A.M., Elvis Presley’s If I Can Dream: Elvis Presley with the Royal Philharmonic Orchestra and Bruce Springsteen’s The Ties That Bind: The River Collection.

     

    Operating income increased ?1.5 billion year-on-year to ?27.4 billion ($228 million). This increase was primarily due to the above-mentioned increase in sales in Recorded Music and Visual Media and Platform.

     

    Operating income increased ?2.4 billion to ?14.6 billion. This increase was primarily due to an improvement in product mix, reflecting an increase in digital streaming revenues says Sony.

     

    Financial services

    Financial services increased 5.6 per cent YoY to ?322.0 billion primarily due to an increase in revenue at Sony Life. Revenue at Sony Life increased 5.7 per cent year-on-year to ?295.0 billion mainly due to an increase in insurance premium revenue reflecting a steady increase in policy amount in force.

     

    Operating income of ?52.2 billion was recorded, essentially flat YoY. At Sony Life, operating income of ?51.6 billion was recorded, essentially flat YoY, mainly due to the above-mentioned increase in insurance premium revenue, substantially offset by an increase in operating expenses.

     

    Other

    Sales decreased 17.7 per cent YoY in Q3-2016 to ?5196.8 billion.

    Operating income of ?515.7 billion was recorded in Q3-2016, compared to an operating loss of ?5112.6 billion in the same quarter of the previous fiscal year. This improvement was primarily due to a decrease in PC exit costs, including restructuring charges and after-sales service expenses, as well as the absence in the current quarter of sales company fixed costs charged to the PC business in the same quarter of the previous fiscal year, which were allocated based on the prior year results says Sony.

     

  • Q1-2016: Sony income triples despite poor performance of mobile & movies

    Q1-2016: Sony income triples despite poor performance of mobile & movies

    BENGALURU: Despite operating losses reported by Sony Corporation’s (Sony) mobile communications, pictures and all other segments, the company’s net attributable to its shareholders more than tripled (up 3.07 times) to ?82.4 billion in the quarter ended 30 June, 2015 (Q1-2016) as compared to the ?26.8 billion in Q1-2015. 

     

    Sony’s Mobile Communications (MC) segment reported a higher operating loss in the current quarter of ?22.9 billion as compared to the ?1.6 billion in the corresponding year ago quarter. Sony Pictures segment reported an operating loss in Q1-2016 of ?11.7 billion as compared to an operating profit of ?7.8 billion in Q1-2015. All others segment reported a lower operating loss in Q1-2016 of ?5 billion as compared to the ?20 billion in Q1-2015. However, Sony’s other segments- Games and Network Services (G&NS), Imaging Products & Solutions (IP&S), Home Entertainment & Sound (HE&S), Devices, Music, and Financial services reported growth in YoY operating income.

     

    Sony’s sales and operating revenue (Sales) decreased by 0.1 per cent in Q1-2016 to ?1808.1 billion compared to ?1,809.9 billion in the corresponding quarter of last year. Sales were essentially flat YoY mainly due to a decrease in Mobile Communications segment sales reflecting a significant decrease in smartphone unit sales and a decrease in Home Entertainment & Sound (HE&S) segment sales reflecting a decrease in unit sales of mid-range LCD televisions, substantially offset by the impact of foreign exchange rates and a significant increase in Devices segment sales reflecting the strong performance of image sensors. On a constant currency basis, sales decreased seven per cent YoY.

     

    Operating income increased ?27.1 billion YoY to ?96.9 billion). This increase was primarily due to an increase in operating income in the Music segment, reflecting the recording of a re-measurement gain, described below, and the impact of the increase in sales in the Devices segment. This increase was partially offset by the negative impact of foreign exchange rates in the MC segment and lower sales in the Pictures segment due to a decrease in theatrical and television licensing revenues for Motion Pictures.

     

    Segment performance

     

    Mobile Communications

     

    Sony’s MC segment sales decreased 16.3 per cent YoY (an 18 per cent decrease on a constant currency basis) to ?280.5 billion in the current quarter as compared to the ?335 billion in Q1-2015. This decrease was due to a significant decrease in smartphone unit sales resulting from a strategic decision not to pursue scale in order to improve profitability.

     

    The above mentioned operating loss increased because of the decrease in smartphone unit sales and an increase in restructuring charges were offset primarily by reductions in marketing and other expenses as well as an improvement in product mix. However, operating loss increased mainly due to the negative impact of the appreciation of the US dollar, reflecting the high ratio of US dollar-denominated costs. During the current quarter there was a ?25.4 billion negative impact from foreign exchange rate fluctuations.

     

    Game & Network Services (G&NS)

     

    G&NS sales increased 12.1 per cent YoY (a seven per cent increase on a constant currency basis) to ?288.6 billion. This significant increase was primarily due to increases in PlayStation4 (PS4) software sales and PS4 peripheral device unit sales as well as the impact of foreign exchange rates, partially offset by a decrease in PlayStation3 (PS3) hardware and software devices.

     

    Operating income increased ?15.1 billion YoY to ?19.5 billion in Q1-2016 as compared to the ?4.1 billion in Q1-2015. This increase was primarily due to PS4 hardware cost reductions, the above-mentioned increases in PS4 software sales and PS4 peripheral device unit sales, partially offset by the negative impact of the appreciation of the US dollar, reflecting the high ratio of US dollar-denominated costs and the decrease in PS3 software sales.

     

    Sony says that operating income in the current quarter also includes ?4.7 billion of insurance recoveries related to losses incurred from the cyberattack on Sony’s network services including the PlayStation Network in the fiscal year ended 31 March, 2012. During the current quarter there was a ?15.6 billion negative impact from foreign exchange rate fluctuations.

     

    Imaging Products & Solutions (IP&S)

     

    IP&S sales increased 3.5 per cent YoY (a five per cent decrease on a constant currency basis) to ?170.4 billion in Q1-2016 as compared to the ?164.6 billion in Q1-2015, primarily due to the impact of foreign exchange rates and an improvement in the product mix of digital cameras reflecting a shift to high value-added models, partially offset by a decrease in unit sales of digital cameras reflecting a contraction of the market.

     

    Operating income increased ?3.9 billion YoY to ?21.3 billion. This increase was mainly due to the improvement in digital camera product mix reflecting a shift to high value-added models, a YoY increase in insurance recoveries related to damages and losses incurred from the floods in Thailand in the fiscal year ended 31 March, 2012, and the positive impact of foreign exchange rates, partially by the impact of the decrease in unit sales of digital cameras. During the current quarter there was a ?2 billion positive impact from foreign exchange rate fluctuations.

     

    Home Entertainment & Sound (HE&S)

     

    Sony’s HE&S sales decreased 13.8 per cent YoY (a 21 per cent decrease on a constant currency basis) to ?253.1 billion yen ($2,075 million). This decrease was primarily due to a decrease in unit sales of LCD televisions, mainly in the mid-range, as well as a decrease in home audio and video unit sales reflecting a contraction of the market.

     

    Operating income increased ?2.1 billion YoY to ?10.9 billion. This increase was primarily due to cost reductions and an improvement in product mix reflecting a shift to high value-added models, partially offset by the above-mentioned decrease in LCD televisions and home audio and video unit sales, as well as the negative impact of the appreciation of the US dollar, reflecting the high ratio of US dollar-denominated costs. During the current quarter there was a ?7.7 billion negative impact from foreign exchange rate fluctuations.

     

    In Televisions, sales decreased 17.6 percent YoY to ?168.9 billion. This decrease was primarily due to a decrease in unit sales. LCD television unit sales decreased YoY in all areas other than North America mainly due to a strategic decision not to pursue scale in order to improve profitability. Operating income decreased ?0.9 billion YoY to ?7 billion. This decrease was primarily due to the impact of the decrease in unit sales and the negative impact of the appreciation of the US dollar, reflecting the high ratio of US dollar-denominated costs, partially offset by an improvement in product mix reflecting a shift to high value-added models and cost reductions.

     

    Devices

     

    Sony’s Devices segment sales increased 35.1 per cent YoY (an 18 per cent increase on a constant currency basis) to ?237.9 billion. This increase was primarily due to a significant increase in sales of image sensors reflecting higher demand for image sensors for mobile products, the impact of foreign exchange rates, as well as a significant increase in sales of camera modules. Sales to external customers increased 41.2 per cent YoY.

     

    Operating income increased ?18.8 billion YoY to ?30.3 billion. This significant increase was primarily due to the impact of the above-mentioned increase in sales of image sensors and the positive impact of foreign exchange rates. During the current quarter there was an ?11 billion positive impact from foreign exchange rate fluctuations.

     

    Pictures

     

    Sales decreased 11.9 per cent YoY (a 26 per cent decrease on a US dollar basis) to ?171.5 billion. The decrease in sales on a US dollar basis was primarily due to significantly lower sales for Motion Pictures reflecting a decrease in theatrical and television licensing revenues. Theatrical revenues decreased due to the stronger worldwide theatrical performance of films released in the same quarter of the previous fiscal year which benefitted from the performances of The Amazing Spider-Man 2 and 22 Jump Street. Television licensing revenues were lower in the current quarter as the same quarter of the previous fiscal year benefitted from sales ofCloudy With A Chance of Meatballs 2 and Captain Phillips.

     

    Sony’s deterioration in operating results was primarily due to the impact of the decrease in theatrical and television licensing revenues noted above.

     

    Music 

     

    Sony’s Music segment comprised the Recorded Music, Music Publishing and Visual Media and Platform categories. Recorded Music includes the distribution of physical and digital recorded music and revenue derived from artists’ live performances; Music Publishing includes the management and licensing of the words and music of songs; Visual Media and Platform includes various service offerings for music and visual products and the production and distribution of animation titles.

     

    Sales increased 8.5 per cent YoY (a three per cent decrease on a constant currency basis) to ?130.2 billion primarily due to the impact of the depreciation of the yen against the US dollar. The decrease in sales on a constant currency basis was primarily due to lower Recorded Music sales. Recorded Music sales decreased primarily due to the continued worldwide contraction of the physical music market. Best-selling titles included Meghan Trainor’s Title, Shogo Hamada’s Journey of a Songwriter and Francis Cabrel’s In Extremis. 

     

    Operating income increased ?20.1 billion YoY to ?31.8 billion. This increase was primarily due to the $151 million (?18.1 billion) gain on the re-measurement to fair value of SME’s 51 per cent equity interest in The Orchard, which had previously been accounted for under the equity method, as a result of SME increasing its ownership interest to 100 per cent and the positive impact of foreign exchange rates.

     

    Financial Services

     

    The segment results include Sony Financial Holdings Inc. (SFH) and SFH’s consolidated subsidiaries such as Sony Life Insurance Co., Ltd. (Sony Life), Sony Assurance Inc. and Sony Bank Inc. (Sony Bank). The results of Sony Life discussed in the Financial Services segment differ from the results that SFH and Sony Life disclose separately on a Japanese statutory basis.

     

    Financial services revenue increased 13.1 per cent YoY to ?279.4 billion primarily due to an increase in revenue at Sony Life. Revenue at Sony Life increased 15.7 per cent YoY to ?250.9 billion mainly due to an increase in insurance premium revenue reflecting an increase in policy amount in force, as well as an improvement in investment performance in the separate account resulting mainly from a larger rise in the Japanese stock market during the current quarter than in the same quarter of the previous fiscal year.

     

    Operating income increased ?2.2 billion yen YoY to ?46.0 billion. This increase was mainly due to an increase in operating income at Sony Life. Operating income at Sony Life increased ?3.7 billion YoY to ?40.9 billion primarily due to an improvement in investment performance in the general account.

     

    All Other

     

    All Other included the PC business in the previous fiscal year. Due to certain changes in Sony’s organizational structure, sales and operating revenue and operating loss of All Other of the comparable prior period have been reclassified to conform to the current presentation.

     

    Sales decreased 22.9 per cent YoY to ?79.3 billion. This significant decrease in sales was primarily due to the recording of sales in the same quarter of the previous fiscal year from the PC business which was sold in July, 2014.

     

    Operating loss decreased ?15 billion YoY to ?5 billion. This decrease was primarily due to the absence of the operating loss from the PC business in Q1-2015.

  • MGM Holdings revenue down, income up in Q3-2014

    MGM Holdings revenue down, income up in Q3-2014

    BENGALURU: MGM Holdings Inc (MGM) reported 4 per cent drop in revenue to US$ 233.47 million in Q3-2014 from US$ 242.90 million in Q3-2013. Income for the period rose 72 per cent to US$ 28.59 million in Q3-2014 from US$ 16.59 million in Q3-2013.

     

    Here below are edited excerpts of MGM’s financial report for the quarter ended 30 September 2014.

     

    MGM says that as expected, revenue was lower due to the significant revenue it generated from its franchise film, Skyfall, which began its worldwide pay television and SVOD distribution in the prior year’s third quarter. This was largely offset by revenue performance in several areas in the current year’s third quarter, including higher revenue from MGM’s home entertainment distribution business, led by the worldwide distribution of RoboCop, plus higher revenue from its successful new television content and incremental revenue from previously released film content.

     

    Theatrical Revenue

     

    MGM’s Worldwide theatrical revenue was US$ 6.5 million for the three months ended 30 September 2014, an increase of US$ 3.9 million as compared to US$ 2.6 million for the three months ended 30 September 2013.

     

    Theatrical revenue for the current year’s third quarter primarily included international revenue for Hercules from certain territories where MGM controls the distribution rights. However, it did not recognise a substantial portion of the worldwide theatrical revenue for If I Stay, Hercules and 22 Jump Street, which are accounted for on a net basis after deduction of theatrical advertising and other related distribution costs. Net revenue from co-produced films is classified as other revenue from film and television content (see below). In comparison, theatrical revenue for the prior year’s third quarter primarily included the tail-end of the international theatrical distribution of The Hobbit: An Unexpected Journey.

     

    Home Entertainment

     

    Worldwide home entertainment revenue was US$ 41.7 million for the three months ended 30 September 2014, an increase of US$ 7.3 million as compared to US$ 34.4 million for the three months ended 30 September 2013. Home entertainment revenue increased in the current year’s third quarter due to the worldwide home entertainment distribution of RoboCop, which commenced in June 2014, plus the continued international distribution of The Hobbit: The Desolation of Smaug. In comparison, MGM did not have a significant home entertainment release in the prior year’s third quarter, which primarily included revenue from the continued international home entertainment distribution The Hobbit: An Unexpected Journey and Skyfall worldwide. The company says that it is also keenly focused on strategies to maximise home entertainment revenue for its library, including targeted promotions such as the MGM 90th anniversary promotion in the current year. In addition, it has a steady pipeline of new film and television content that continues to generate home entertainment revenue, including recently released titles such as The Hobbit: An Unexpected Journey internationally, Carrie, Skyfall and its successful television series, Teen Wolf and Vikings, which have performed well in both physical home entertainment and EST.

     

    Television Licensing

     

    Worldwide television licensing revenue was US$ 150.6 million for the three months ended 30 September 2014, a decrease of US$ 15.2 million as compared to US$ 165.8 million for the three months ended 30 September 2013. Television licensing revenue was lower in the current year’s third quarter primarily due to significant revenue from Skyfall in the prior year’s third quarter, including its domestic pay television premiere on Epix and its initial pay television and SVOD availabilities in several territories internationally. The prior year’s third quarter also included the initial international television licensing of The Hobbit: An Unexpected Journey. Partially offsetting this decline was higher revenue from new television content in the current year’s third quarter, which primarily included MGM’s continued international television licensing of three successful current television series, Teen Wolf, Vikings and Fargo. In addition, MGM says that it generated revenue from several new film releases, including the initial international pay television and SVOD availabilities of The Hobbit: The Desolation of Smaug, the domestic pay television premiere of Carrie on Epix, and VOD revenue for RoboCop.

     

    Other Revenue

     

    Other revenue from film and television content was US$ 13.6 million for the three months ended 30 September 2014, a decrease of US$ 10.7 million as compared to US$ 24.3 million for the three months ended 30 September 2013. Other revenue primarily included net revenue for MGM’s share of the distribution proceeds earned by its co-production partners for co-produced films for which its partners control the distribution rights in various distribution windows, including theatrical, home entertainment, television licensing and ancillary businesses. Net revenue from co-produced films is impacted by the timing of when a film’s cumulative aggregate revenues exceed its cumulative aggregate distribution fees and expenses. The decrease in the current year’s third quarter primarily reflected a higher number of titles moving through first-cycle distribution windows for which MGM record’s revenue on a gross basis as opposed to a net basis.

     

    Ancillary Businesses

     

    Total revenue from MGM ancillary businesses, which include MGM branded television channel operations, interactive gaming, consumer products, music performance and other revenue, was US$ 21.1 million for the three months ended 30 September 2014, an increase of US$ 5.3 million as compared to US$ 15.8 million for the three months ended 30 September 2013. This increase was primarily due to the timing of revenue from MGM branded television channels.

     

    Click here to read the full financial report

  • Wyatt Russell, son of Kurt, to joining Channing Tatum, Jonah Hill in ’22 Jump Street’

    Wyatt Russell, son of Kurt, to joining Channing Tatum, Jonah Hill in ’22 Jump Street’

    MUMBAI: Wyatt Russell, the son of Kurt Russell and Goldie Hawn, is joining Channing Tatum and Jonah Hill in 22 Jump Street, the sequel to Sony’s hit action comedy 21 Jump Street.

     

    Phil Lord and Chris Miller are back in the director’s chair for the movie, which moves the undercover cop conceit from high school to college.

     

    The part is a major coup for Russell, who up until now has been known for his minor league hockey career. (In fact, he played a hockey player in last year’s Judd Apatow comedy This Is 40.) But he has been slowly making in-roads into screen work, with recent credits that include Cowboys & Aliens and Love and Honor, a drama that also starred Liam Hemsworth and Teresa Palmer.

     

    His part in Jump Street is sizable: He plays a frat brother who bonds with Tatum’s character and is the lead suspect in the case.

     

    Russell, repped by UTA, is currently shooting Cold in July opposite Michael C. Hall and will also play the role of Bobby Orr in the indie hockey movie Turk opposite Ed Burns and Logan Marshall Green.