ITV

Tag: PlayStation4

  • Sony to expand TV business in India; forex and mobile segment dull Q3-17 numbers

    Sony to expand TV business in India; forex and mobile segment dull Q3-17 numbers

    BENGALURU: Sony Corporation’s (Sony) CFO Kenichiro Yoshida said at the investors meet, “In order to expand our businesses outside the US, primarily in India, we are taking various measures to grow including M&A.”

    Sony plans to turnaround the Pictures (Film and Television business) Division that incurred a loss of ¥106.8 billion) for the quarter ended 31 December 2016 (Q3-17, current quarter). The loss was because by an impairment loss of goodwill to the extent of ¥112.1 billion (about $962 million at the applicable exchange rates at the time. For Q3-16, the division had reported an operating profit of ¥20.4 billion.

    Sony’s Pictures segment reported a 14.1 percent decline in sales and operating revenue from ¥225.2 billion from 262.1 billion due to lower sales of Motion Pictures offset by the higher sales of Television Production business.

    As a part of the turnaround, Sony says it will pursue new sales channels and movie merchandising opportunities. The impairment charge resulted from a downward revision in the future profitability projection for the Motion Pictures business within the Pictures segment.

    The downward revision of goodwill was primarily due to a lowering of previous expectations regarding the home entertainment business, mainly driven by an acceleration of market decline. Underlying profitability projections of film performance were also reduced, but the adverse impact of that reduction is expected to be largely mitigated by measures that have been identified to improve the profitability of the Motion Pictures business says the company.

    Overall, Sony reported a 7.1 percent year-on-year (y-o-y) decline in sales and operating revenue for Q3-17 at ¥2,397.5 billion as compared to ¥2,580.8 billion. The company says that the decline was primarily due to the impact of foreign exchange rates. On a constant currency basis, sales were flat y-o-y due to improved performance by its Games and Network Services (G & NS) division which was partly offset by the poor performance of its Mobile Communications segment.

    Net income attributable to Sony’s shareholders’ declined to less than a sixth (declined by 83.7 percent) in the current quarter to ¥19.6 billion from ¥120.1 in the corresponding year ago quarter. The decline was primarily attributable to the impairment loss incurred by its Pictures division.

    Sony’s Mobile Communication division reported a massive 35.3 percent y-o-y decline in operating and sales revenue in Q3-17 to ¥248.6 billion from ¥384.5 billion. Operating income declined 12.1 percent y-o-y in the current quarter to ¥21.2 billion from ¥24.1 billion.

    The G & NS division reported a 5.2 percent (15 percent on a constant currency basis) y-o-y increase in Q3-17 in sales and operating revenue to ¥617.7 billion from 587.1 billion. Higher sales of PlayStation4 software and PlayStation VR which was launched in October 2016 contributed to the growth. The G & NS division reported 24.5 percent increase in operating income in the current quarter to ¥50 billion from ¥40.2 billion.

    Sony’s Imaging Products and Solutions (IP & S) division reported a 9.6 percent y-o-y decline in sales and operating revenue in Q3-17 revenue to ¥167.1 billion from ¥184.8 billion. Operating income of the segment declined 7.5 percent y-o-y in the current quarter to ¥22.1 billon from ¥22.8 billion. The company attributes the declines to forex fluctuations and a change in its product mix for the division.

    Home Entertainment and Sound (HE & S) division reported a 12.1 percent y-o-y decline in Q3-17 to ¥353.3 billion from ¥402 billion in sales and operating revenue. The company attributes the declines to forex fluctuations and a decline in home audio and video unit sales due to a contraction of the market.

    Operating income of the HE & S division declined 16.7 percent y-o-y in Q3-17 to ¥25.9 billion from ¥31.2 billion.

    Sony’s Semiconductors division reported a 16.9 percent y-o-y increase in sales and operating revenues in Q3-17 to ¥233.9 billion from ¥200 billion. The division’s operating income increased 27.6 percent y-o-y in the current quarter to ¥27.2 billion from ¥21.3 billion.

    Components division reported 10.3 percent y-o-y decline in Q3-17 in sales and operating revenue at ¥51.4 billion from ¥57.3 billion. Operating loss of the segment in the current quarter reduced to ¥3.7 billion from ¥32.7 billion.

    Sony’s Music division reported a 1.8 percent decline in sales and operating revenue in the current quarter to ¥178.5 billion from ¥181.8 billion. The decline was due to the appreciation of the yen against the US dollar and lower Recorded Music sales. Operating income of the segment increased 2.4 percent to ¥28 billion from ¥27.3 billion.

    Sony’s Financial Services division reported 0.9 percent y-o-y decline in revenue in Q3-17 to ¥319.1 billon from ¥322 billion. Operating income of the division declined 44.5 percent y-o-y in the current quarter to ¥29 billion from ¥52.2 billion.

  • Sony to expand TV business in India; forex and mobile segment dull Q3-17 numbers

    Sony to expand TV business in India; forex and mobile segment dull Q3-17 numbers

    BENGALURU: Sony Corporation’s (Sony) CFO Kenichiro Yoshida said at the investors meet, “In order to expand our businesses outside the US, primarily in India, we are taking various measures to grow including M&A.”

    Sony plans to turnaround the Pictures (Film and Television business) Division that incurred a loss of ¥106.8 billion) for the quarter ended 31 December 2016 (Q3-17, current quarter). The loss was because by an impairment loss of goodwill to the extent of ¥112.1 billion (about $962 million at the applicable exchange rates at the time. For Q3-16, the division had reported an operating profit of ¥20.4 billion.

    Sony’s Pictures segment reported a 14.1 percent decline in sales and operating revenue from ¥225.2 billion from 262.1 billion due to lower sales of Motion Pictures offset by the higher sales of Television Production business.

    As a part of the turnaround, Sony says it will pursue new sales channels and movie merchandising opportunities. The impairment charge resulted from a downward revision in the future profitability projection for the Motion Pictures business within the Pictures segment.

    The downward revision of goodwill was primarily due to a lowering of previous expectations regarding the home entertainment business, mainly driven by an acceleration of market decline. Underlying profitability projections of film performance were also reduced, but the adverse impact of that reduction is expected to be largely mitigated by measures that have been identified to improve the profitability of the Motion Pictures business says the company.

    Overall, Sony reported a 7.1 percent year-on-year (y-o-y) decline in sales and operating revenue for Q3-17 at ¥2,397.5 billion as compared to ¥2,580.8 billion. The company says that the decline was primarily due to the impact of foreign exchange rates. On a constant currency basis, sales were flat y-o-y due to improved performance by its Games and Network Services (G & NS) division which was partly offset by the poor performance of its Mobile Communications segment.

    Net income attributable to Sony’s shareholders’ declined to less than a sixth (declined by 83.7 percent) in the current quarter to ¥19.6 billion from ¥120.1 in the corresponding year ago quarter. The decline was primarily attributable to the impairment loss incurred by its Pictures division.

    Sony’s Mobile Communication division reported a massive 35.3 percent y-o-y decline in operating and sales revenue in Q3-17 to ¥248.6 billion from ¥384.5 billion. Operating income declined 12.1 percent y-o-y in the current quarter to ¥21.2 billion from ¥24.1 billion.

    The G & NS division reported a 5.2 percent (15 percent on a constant currency basis) y-o-y increase in Q3-17 in sales and operating revenue to ¥617.7 billion from 587.1 billion. Higher sales of PlayStation4 software and PlayStation VR which was launched in October 2016 contributed to the growth. The G & NS division reported 24.5 percent increase in operating income in the current quarter to ¥50 billion from ¥40.2 billion.

    Sony’s Imaging Products and Solutions (IP & S) division reported a 9.6 percent y-o-y decline in sales and operating revenue in Q3-17 revenue to ¥167.1 billion from ¥184.8 billion. Operating income of the segment declined 7.5 percent y-o-y in the current quarter to ¥22.1 billon from ¥22.8 billion. The company attributes the declines to forex fluctuations and a change in its product mix for the division.

    Home Entertainment and Sound (HE & S) division reported a 12.1 percent y-o-y decline in Q3-17 to ¥353.3 billion from ¥402 billion in sales and operating revenue. The company attributes the declines to forex fluctuations and a decline in home audio and video unit sales due to a contraction of the market.

    Operating income of the HE & S division declined 16.7 percent y-o-y in Q3-17 to ¥25.9 billion from ¥31.2 billion.

    Sony’s Semiconductors division reported a 16.9 percent y-o-y increase in sales and operating revenues in Q3-17 to ¥233.9 billion from ¥200 billion. The division’s operating income increased 27.6 percent y-o-y in the current quarter to ¥27.2 billion from ¥21.3 billion.

    Components division reported 10.3 percent y-o-y decline in Q3-17 in sales and operating revenue at ¥51.4 billion from ¥57.3 billion. Operating loss of the segment in the current quarter reduced to ¥3.7 billion from ¥32.7 billion.

    Sony’s Music division reported a 1.8 percent decline in sales and operating revenue in the current quarter to ¥178.5 billion from ¥181.8 billion. The decline was due to the appreciation of the yen against the US dollar and lower Recorded Music sales. Operating income of the segment increased 2.4 percent to ¥28 billion from ¥27.3 billion.

    Sony’s Financial Services division reported 0.9 percent y-o-y decline in revenue in Q3-17 to ¥319.1 billon from ¥322 billion. Operating income of the division declined 44.5 percent y-o-y in the current quarter to ¥29 billion from ¥52.2 billion.

  • 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.

     

  • Q2-2016: PS4, Music mitigate lacklustre results by other Sony segments

    Q2-2016: PS4, Music mitigate lacklustre results by other Sony segments

    BENGALURU: Good performances to the extent of double digit percentage revenue growth by Sony Corporation’s (Sony) Games & Network Services (G&NS) and Music segments helped mitigate the lacklustre and poor performance by the company’s Mobile Communications (MC) and more specifically its Financial Services segments. ‘All Other’ segment reported almost flat revenue growth. Sony’s other segments – Imaging Products & Solutions (IPS&), Pictures, Devices, segments reported almost flat to growth in single digit percentage terms. The company’s Home Entertainment & Sound (HES) segment and reported a slight decrease in revenue, but a growth in operating income. On a constant currency basis, Sony’s sales decreased seven per cent YoY.

     

    Sony reported almost flat sales and operating revenue (decline of 0.5 per cent) in Q2-2016 (Quarter ended 30 September, 2014, current quarter, second quarter of 2015) at ?1892.7 billion as compared to the ?1901.5 billion in Q2-2015. The company reported net income attributable to Sony shareholders of ?33.6 billion in Q2-2016 as compared to a loss of ?136 billion in the corresponding year ago quarter.

     

    Sony says that sales were essentially flat YoY mainly due to a decrease in Financial Services segment revenue, reflecting a deterioration in investment performance in the separate account, and a decrease in MC segment sales, reflecting a significant decrease in smartphone unit sales, substantially offset by the impact of foreign exchange rates and a significant increase in G&NS segment sales, reflecting an increase in PS4 software sales.

     

    Segment Performance

     

    Mobile Communications

     

    Sony’s MC segment reported a 15.2 per cent decline in sales to ?279.2 billion in the current quarter as compared to the ?329.5 billion in Q2-2015, 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 lower operating loss of ?20.6 billion in Q2-2016 as compared to ?170.6 billion in Q2-2015. Sony says that this decrease in operating loss was primarily due to a ?176.0 billion impairment charge of goodwill recorded in the same quarter of the previous fiscal year. The operating results were also primarily affected by the negative impact of the appreciation of the US dollar, reflecting the high ratio of US dollar-denominated costs, and an increase in restructuring charges. The negative impact of the above-mentioned decrease in smartphone unit sales was offset by an improvement in product mix reflecting a shift to high value-added models, as well as reductions in costs including marketing and research and development expenses. During the current quarter there was a ?24.4 billion negative impact from foreign exchange rate fluctuations.

     

    Game & Network Services (G&NS)

     

    GN&S segment reported a 16.5 per cent increase in sales to ?360.7 billion in Q2-2016 as compared to the ?309.5 million in Q2-2015, 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 9.8 per cent to ?23.9 billion in Q2-2016 as compared to the ?21.8 billion in Q2-2015. The gain due to increase in PS4 software sales was partially offset by the negative impact of the appreciation of the US dollar, reflecting the high ratio of US dollar-denominated costs and the above-mentioned decrease in PS3 software sales. During the current quarter there was a 13.1 billion yen negative impact from foreign exchange rate fluctuations informs Sony.

     

    Imaging Products & Solutions (IP&S)

     

    IP&S segment reported a 4.1 per cent improvement in sales to ?186 billion in the current quarter as compared to the ?178.6 billion in Q2-2015 due to an improvement in product mix of digital cameras reflecting a shift to high value-added models and the impact of foreign exchange rates, partially offset by a decrease in unit sales of digital cameras reflecting a contraction of the market.

     

    IP&S operating income increased 28.6 per cent to ?25.9 billion in Q2-2016 as compared to the ?20.1 billion in Q2-2015. 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 an almost flat (declined 0.2 per cent) in revenue to ?289.1billion in the current quarter as compared to the ?289.7 billion in Q2-2015 due to a decrease in home audio and video unit sales reflecting a contraction of the market, offset by an improvement in product mix of LCD televisions reflecting a shift to high value-added models and the impact of foreign exchange rates.

     

    HE&S operating income reported 73.9 per cent growth in operating income to ?15.8 billion in Q2-2016 as compared to the ?9.1 billion in Q2-2015 due to cost 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 home audio and video unit sales. During the current quarter there was a ?10.4 billion negative impact from foreign exchange rate fluctuations.

     

    In Televisions, sales increased 1.6 per cent YoY to ?203 billion. This increase was primarily due to an improvement in product mix reflecting a shift to high value-added models and the impact of foreign exchange rates, partially offset by a decrease in LCD television unit sales resulting from a strategic decision not to pursue scale in order to improve profitability. Operating income increased ?4.8 billion YoY to ?9.7 billion. This increase was primarily due to cost 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, and the impact of the decrease in unit sales.

     

    Devices

     

    Devices sales increased 7.4 per cent YoY to ?258.1 billion in the current quarter from ?240.4 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 Q2-2016 increased ?4.4 billion YoY to ?32.7 billion from ?28.3 billion in Q2-2015. This increase was due to the positive impact of foreign exchange rates and the above-mentioned impact of an increase in sales of image sensors, partially offset by an increase in depreciation and amortisation, an increase in research and development expenses and a decrease in battery business sales. During the current quarter there was a ?12 billion positive impact from foreign exchange rate fluctuations.

     

    Pictures

     

    Sony’s Pictures segment reported 0.9 per cent growth in sales to ?183.7 billion in Q2-2016 as compared to the ?182.2 billion in Q2-2015. However, in terms of US dollars there was a 14 per cent decrease due to significantly lower sales for Motion Pictures reflecting lower home entertainment revenues, as the same quarter of the previous fiscal year benefitted from the home entertainment performances of The Amazing Spider-Man 2 and Heaven is for Real, as well as lower television licensing revenues.

     

    Operating loss in the current quarter increased ?21.4 billion YoY to ?22.5 billion from ?1 billion in Q2-2014 due to the impact of the above-mentioned decrease in Motion Pictures sales as well as higher worldwide theatrical marketing expenses due to a greater number of significant theatrical releases in the current quarter as compared to Q2-2015.

     

    Music

     

    Music reported 15 per cent increase in sales to ?138.7 billion in q2-2016as compared to the ?120.6 billion in Q2-2015 due to the impact of the depreciation of the yen against the US dollar. The increase in sales on a constant currency basis was primarily due to an increase in Visual Media and Platform sales reflecting higher live entertainment venue revenue and higher sales of animation products. Best-selling titles included David Gilmour’s Rattle that Lock, Future’s DS2 and Maitre Gims’ Mon Coeur Avait Raison.

     

    Operating income increased ?2.4 billion year-on-year to ?14.6 billion ($122 million). This increase was primarily due to an improvement in product mix, reflecting an increase in digital streaming revenues.

     

    Financial Services

     

    Financial Services reported a steep decline of 21.8 per cent in sales in the current quarter to ?201.7 billion as compared to the ?269.6 billion in Q2-2015 due to a significant decrease in revenue at Sony Life.

     

    Operating income decreased ?6.5 billion YoY to ?41.2 billion mainly due to a decrease in operating income at Sony Life.

     

    All Other

     

    Sales increased one per cent YoY to ?87.4 billion in the current quarter from ?86.5 billion in Q2-2015.

     

    Operating income of ?0.5 billion was recorded in Q2-2016 compared to an operating loss of ?19.8 billion in Q2-2015 due to a decrease in PC exit costs, including restructuring charges and after-sales service expenses, as well as the absence 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.