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Tag: Sony Corporation

  • FY-16: Games, Music dampen Mobile’s drop in Sony revenue; reports profit

    FY-16: Games, Music dampen Mobile’s drop in Sony revenue; reports profit

    BENGALURU:  Sony Corporation (Sony) reported 1.3 percent drop in sales for the year ended 31 March 2016 (FY-16, current year). Sony’s revenue for the current year was ¥8,105.7 billion, for the previous year it was ¥8,215.9 billion. Sony attributes the decrease to a decline of 20 percent in sales of its Mobile Communications (MC) segment which was offset by a 11.8 percent increase in sales of its Games and Network Services (G&NS) segment, and a 10.4 percent in sales from its Music segment. The increase in sales from Sony’s G&NS segment reflects an increase in sales of its PlayStation 4 (PS4).

    Sony’s reported net income attributable to stockholders at ¥147.8 billion for the current year as compared to a loss of ¥126 billion yen in the previous year.

    Of special significance from the India perspective was the increase in Media Networks sales which was primarily due to higher advertising revenues in India and the United Kingdom. The Media Networks is a category in Sony’s Pictures segment.

    Mobile Communications

    MC segment reported 20 percent drop in sales in FY-16 to ¥1,127.5 billion from ¥1,410.2 billion in the previous year. The segment reported a lower operating loss of ¥61.4 billion as compared to an operating loss ¥217.6 billion in the previous year. The company says that this was because of a strategic decision not to pursue scale in order to improve profitability.

    Game & Network Services

    G&NS segment reported an increase of 11.8 percent in sales to ¥1,551.9 billion in the current year as compared to ¥1,388 billion in the previous year. The above mentioned gains from PS4 were offset by a decline in PS3 hardware and software sales. Operating income in FY-16 increased 84.4 percent in the current year to ¥88.7 billion from ¥48.1 billion in the previous year. Sony attributes the increase to increase in PS4 software sales and PS4 hardware cost reductions as well as the absence of write down of ¥11.2 billion in the current year of PS Vita and PS TV components that was recorded in FY-15.

    Imaging Products & Solutions (IP&S)

    IP&S segment reported a 1.7 percent decline in sales in FY-16 to ¥712.2 billion as compared to ¥723.9 billion in the previous year. Sony says that sales of video cameras and digital cameras were lower due to the contraction of the market. This segment reported a 72.1 increase in operating profit in FY-16 at ¥72.1 billion from ¥41.8 billion in the previous year. The increase was due to improvement in product mix of digital cameras and price reductions.

    Home Entertainment & Sound (HE&S)

    HE&S segment reported a 6.4 percent decline in sales in FY-16 to ¥1,159 billion from ¥1,238.1 billion in FY-15. Sony says that this was due to a decline in unit sales of LCD televisions and a decline in home audio and video unit sales, reflecting a contraction of the market. Television sales declined 4.5 percent in FY-16 to ¥797.8 billion as compared to last year.

    The segment’s operating income increased to ¥50.6 billion in the current year from ¥24.1 in FY-15, primarily due to cost reductions and increase in product mix.

    Devices

    Devices segment revenue in FY-16 was flat (increased by 0.9 percent) to ¥735.8 billion from ¥927.1 billion in FY-15. The segment reported an operating loss of ¥28.6 billion in the current year as compared to an operating profit of ¥89 billon in FY-15.

    Pictures

    Pictures segment sales increased 6.8 percent to ¥938.1 billion in FY-16 from ¥878.7 billion in the previous year. Sony’s Pictures segment is primarily comprises of Motion Pictures, Televisions Productions and Media Networks categories. The impact of forex rates and lower sales in Motion Pictures was offset by higher sales in Televisions Productions and Media Networks. The increase in Media Networks was primarily due to higher advertising revenues in India and the United Kingdom. The increase in Television Productions sales was primarily due to higher subscription video-on-demand (VOD) revenues from Breaking Bad, The Blacklist and Better call Saul.

    Operating income for the segment declined 51.9 percent in the current year to ¥38.5 billion from ¥58.5 billion in FY-15.

    Music

    Sony’s Music segment comprises of Recorded Music, Music Publishing and Visual Media and Platform categories. The segment reported a 10.4 percent increase in sales to ¥617.6 billion in FY-16 from ¥559.2 billion in FY-15. Sony says that the increase was primarily due to the depreciation of the yen versus the US dollar. There was a significant increase in Visual Media and Platform sales reflecting the continued strong performance of a game application for mobile devices. In Recorded Music digital streaming revenues significantly increased, partially offset by a worldwide decline in physical and digital download sales. The current year includes the record breaking sales of Adele’s new album 25. Other best-selling titles include One Direction’s Made in the A.M., David Bowie’s Black Star and Meghan Trainor’s Title.

    The segment’s operating income increased 44.1 percent in FY-16 to ¥87.3 billion from ¥60.6 billion in the previous year.

    Besides the above, Sony has two other segments – Financial Services and All Other services. Numbers of these segments have not been mentioned in this report.

  • 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.

  • Eutelsat to present key UHD trends at MIPCOM

    Eutelsat to present key UHD trends at MIPCOM

    MUMBAI: The television business is dramatically transforming as broadcasters scale up production of premium content and delivery of an enhanced viewing experience. As the industry lines up to adopt Ultra HD (UHD) TV, the new quality benchmark in broadcasting, Eutelsat Communications will share research at MIPCOM on consumer appetite in key European TV markets for this latest evolution.

     

    The pulse of UHD will be presented by Eutelsat today at the MIPCOM show in a ‘4k focus welcome address.’ It will include key findings of new qualitative consumer research conducted for Eutelsat by market research firm TNS, and fresh data from GfK on Ultra HD screen sales.

     

    Eutelsat head of market research and customer experience Claudia Vaccarone and Eutelsat director of marketing innovation and digital cinema Michel Chabrol will share insight on how to anticipate UHD mass-market deployment. 

     

    They will be joined by Sony Corporation senior producer, visual entertainment Joe Nakata and well-known journalist and broadcast industry expert Chris Forrester.

     

    Since its first broadcasts of Ultra HD in January 2013, Eutelsat has amassed industry-leading expertise on the conditions for successful transition to this new format. Two Eutelsat satellites are broadcasting permanent channels in Ultra HD, showing Eutelsat co-productions and content produced by independent programme-makers who have sought out Eutelsat’s satellite platforms to promote their work.

  • Sony & Technicolor form patent licensing program for Digital TV & CDM

    Sony & Technicolor form patent licensing program for Digital TV & CDM

    MUMBAI: Sony Corporation and Technicolor have formed a joint patent licensing program for digital television (DTV) and computer display monitor (CDM).

     

    Technicolor will be the exclusive licensing agent of the combined portfolio that covers DTV and CDM. The license is offered for the convenience of both existing and new licensees, enabling them to obtain a single license as an alternative to negotiating separate licenses.

     

    “By combining these two complementary patent portfolios under a single licensing program, we are providing a leaner and more efficient licensing program for the industry in the field of DTV and CDM. This agreement builds on Technicolor’s successful track-record of monetizing its portfolio of intellectual property and the strength of its licensing teams,” said Technology Group president and Technicolor deputy CEO Stephane Rougeot.

     

    Technicolor is constantly investing in research and development in technology areas that are pervasively adopted in DTV and CDM, including video and audio compression, high dynamic range, wide colour gamut, user interface and other display technologies.

     

    “Sony has a long history of successfully managing its large patent portfolio. We have done this alone, jointly with other companies, or through third parties. This joint licensing program is another example of managing our patent portfolio and making it more broadly available in an efficient manner,” said Sony Corporation SVP corporate executive in charge of intellectual property Toshimoto Mitomo. 

  • FY-2015: Forex, PS4, image sensors boost Sony revenue 5.8%

    FY-2015: Forex, PS4, image sensors boost Sony revenue 5.8%

    BENGALURU: Sony Corporation reported a 5.8 per cent growth in sales and operating revenue in FY-2015 (year ended 31 March, 2015, current year) at ?8215.9 billion as compared to the ?7767.5 billion in FY-2014. The company says that the increase was primarily due to the impact of foreign exchange rates, a significant increase in Game & Network Services (G&NS) segment sales reflecting the strong performance of PlayStation 4 (PS4) and a significant increase in Devices segment sales due to the strong performance of image sensors. This increase was partially offset by a significant decrease in sales in All Other, primarily related to Sony’s exit from the PC business. On a constant currency basis, sales were essentially flat year-on-year says the company.

     

    The company’s operating income more than doubled (up 2.6 times) to ?68.5 billion in the current year from ?26.5 billion in the previous year. Sony says that the increase was primarily due to a significant improvement in the operating results of the Devices, G&NS and Home Entertainment & Sound (HE&S) segments. This improvement was partially offset by a significant deterioration in operating results in the Mobile Communications (MC) segment, primarily due to a ?176.0 billion ($1,467 million) impairment of goodwill.

     

    The net loss attributable to Sony’s stockholders in the year at ?126 billion in FY-2015 was slightly lower than the loss of ?128.4 billion in FY-2014.

     

    Business Segments

     

    Mobile Communications (MC)

     

    Sony’s MC segment reported 11 per cent improvement in sales and operating revenues in FY-2015 to ?1323.3 billion as compared to the ?1191.8 billion in FY-2014. The segment reported an operating loss of ?220.4 billion in the current year as compared to an operating profit of ?12.6 billion last year. As mentioned above, the major contributor to loss was the impairment of goodwill of ?176.0 billion.

     

    Game & Network Services (G&NS)

     

    G&NS segment reported 33 per cent growth in sales and operating income to ?1388 billion in FY-2015 as compared to the ?1043.9 billion in FY-2014. Sales and operating income increase was primarily due to an increase in PS4 hardware unit sales, an increase in network services revenue, the impact of foreign exchange rates and an increase in PS4 software sales, partially offset by a decrease in PlayStation3 (PS3) hardware and PS3 software sales.

     

    The segment’s operating profit improved to ?48.1 billion in the current year as compared to a loss of ?18.8 billion in the previous year.

     

    Imaging Products & Solutions (IP&S)

     

    IP&S reported 2.9 per cent drop in sales and operating revenue to ?720 billion in the current year from ?741.2 billion in the previous year primarily due to a significant decrease in unit sales of digital cameras and video cameras reflecting a contraction of these markets, partially offset by the impact of foreign exchange rates and an improvement in the product mix of digital cameras reflecting a shift to high value-added models.

     

    Operating income more than doubled (2.08 times) in FY-2015 to ?54.7 billion as compared to the ?26.2 billion in FY-2014. This increase was mainly due to a reduction in selling, general and administrative expenses, the favourable impact of foreign exchange rates and the above-mentioned improvement in product mix reflecting a shift to high value-added models, partially offset by the above-mentioned decrease in sales of digital cameras and video says Sony.

     

    Home Entertainment & Sound (HE&S)

     

    HE&S revenue in FY-2015 improved 3.3 per cent to ?1207.3 billion from ?1168.6 billion in the previous year due to the impact of foreign exchange rates and an increase in sales of televisions, partially offset by a decrease in audio and video sales. Unit sales of LCD televisions increased mainly due to increases in North America, Japan and Europe, partially offset by decreases in Latin America and China. In Television, sales increased 10.7 per cent year-on-year to ?835.1 billion in FY-2015.

     

    The segment reported operating profit of ?20.1 billion as compared to a loss of ?25.5 in the previous year due to cost reductions and an improvement in product mix reflecting a shift to high value-added models, partially offset by the unfavourable impact of the appreciation of the U.S. dollar, reflecting the high ratio of US dollar-denominated costs.

     

    Devices

     

    Revenue improved 23.9 per cent in FY-2015 to ?957.8billion from ?773 billion in FY-2014 due to increase in sales of image sensors reflecting higher demand 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 29.8 per cent year-on-year.

     

    The segment reported operating profit of ?93.1 billion in the current year as compared to a loss of ?12.4 billion in FY-2014 due to the impact of the above-mentioned increase in sales of image sensors, the recording of a 32.1 billion yen impairment charge related to long-lived assets in the battery business in the previous fiscal year and the favourable impact of foreign exchange rates.

     

    Pictures

     

    Sony’s Pictures segment report 5.9 per cent rise in FY-2015 in revenue to ?878.7 billion from ?829.6 billion in FY-2014. However in dollar terms, sales from the segment reduced 4 per cent to $7322 million due to a decrease in sales for Motion Pictures and Television Productions. The decrease in Motion Pictures sales was primarily due to lower theatrical revenues reflecting fewer theatrical releases as compared to the previous fiscal year. The decrease in Television Productions sales was due to the previous fiscal year benefitting from the extension and expansion in scope of a licensing agreement for game shows produced by SPE, including Wheel of Fortune. Sales for Media Networks increased year-on-year due to higher digital game revenues and advertising revenues primarily due to acquisitions made in the previous and current fiscal year.

     

    Pictures segment operating income improved 13.4 per cent to ?58.5 billion in FY-2015 from ?51.6 billion in the previous year due to the favourable impact of the depreciation of the yen against the U.S. dollar. On a US dollar basis, operating income was essentially flat year-on-year. The current fiscal year benefitted from the stronger performance of the current fiscal year’s film slate as the previous fiscal year reflected the underperformance of White House Down and After Earth. The current fiscal year also benefitted from lower restructuring charges. Partially offsetting this increase was a gain recognized on the sale of SPE’s music publishing catalogue in the previous fiscal year, the above mentioned decrease in Television Productions sales and higher programming and marketing costs for SPE’s television networks in India.

     

    Music

     

    Sony’s Music segment reported an improvement of 8.2 per cent in revenue in FY-2105 to ?544.6 billion from ?503.3 in the previous year due to depreciation of the yen against the US dollar.

     

    Operating Income in FY-2015 improved 17.4 per cent to ?59 billion form ?50.2 billion in FY-2014.

     

    Financial Services

     

    Financial Services revenue in FY-2015 increased nine per cent to ?1083.6 billion from ?993.8 billion in FY-2014. Operating income from the segment improved 13.5 per cent in the current year to ?193.3 billion from ?170.3 billion in the previous year.

     

    Cyber attack impact on Sony’s FY-2015 figures

     

    Sony’s FY-2015 numbers also included approximately $41 million (?4.9 billion) in costs primarily related to investigation and remediation expenses relating to a cyber attack on SPE’s network and IT infrastructure, which was identified in November 2014 (the cyber attack).

     

  • Games, network services raise Sony Q2-2015 revenue, impairment of goodwill widens loss

    Games, network services raise Sony Q2-2015 revenue, impairment of goodwill widens loss

    BENGALURU: Sony Corporation (Sony) reported sales of ? 1,901.5 billion (US$ 17,445 million) in Q2-2015, (quarter ended 30 September 2014, current quarter) an increase of 7.2 percent compared to ? 1774.2 billion in Q2-2014. An operating loss of Y 85.6 billion yen (US$ 785 million) was recorded in the current quarter, compared to operating income of 13.9 billion yen in Q2-2014. This significant deterioration was primarily due the ? 176.0 billion yen (US$ 1615 million) impairment of goodwill recorded in the company’s Mobile Communications (MC) segment says the company.

    Sony says that increase in sales was primarily due to a significant increase in its games and network services segment (G&NS) sales, reflecting the contribution of the PlayStation 4 (PS4), a significant increase in devices segment sales primarily due to the strong performance of image sensors, as well as the favourable impact of foreign exchange rates. This increase was partially offset by a significant decrease in sales in All Other, primarily related to Sony’s exit from the PC business, explains the company.

    Mobile Communications Segment (MC)

    Sony’s MC segment’s sales increased 1.2 percent in Q2-2015 to ? 308.4 billion (US$ 2829 million) from ? 304.6 billion, primarily due to the favourable impact of foreign exchange rates, partially offset by a decrease in sales mainly in Japan.

    Operating loss of ? 172.0 billion (US$ 1578 million) in Q2-2015 was recorded, compared to operating income of ? 8.8 billion in Q2-2014. As mentioned above, this deterioration was primarily due to the impairment charge of goodwill recorded in this segment. Further, in the current quarter, marketing expenses and research and development expenses increased year-on-year in order to expand sales channels adding to the loss says Sony.

    Games & Network Services Segment

    G&NS sales increased 83.2 percent in Q2-2015 to ? 309.5 billion (US$ 2839 million) from ? 169 million in Q2-2014. This significant increase was primarily due to the contribution from PS4 hardware sales, a significant increase in network services revenue related to the introduction of the PS4 and the contribution from PS4 software sales, partially offset by a decrease in PlayStation3 (PS3) hardware and PS3 software sales. Sales to external customers increased 97.0 per cent year-on-year.

    Operating income of ? 21.8 billion (US$ 200 million) was recorded, compared to an operating loss of ? 4.2 billion in Q2-2014. This improvement was primarily due to the impact of the above-mentioned increase in sales related to the introduction of the PS4, partially offset by the impact of the above-mentioned decrease in PS3 software sales says the company.

    Imaging and Print Services (I&PS)

    I&PS sales increased 1.8 percent year-on-year to ? 178.6 billion (US$ 1639 million) in Q2-2015 from ? 175.5 billion in Q2-2014. Sales were essentially flat year-on-year primarily due to the favourable 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 significant decrease in unit sales of digital cameras.

    Operating income of ? 20.1 billion (US$ 184 million) was recorded, compared to an operating loss of ? 2.3 billion in the same quarter of the previous fiscal year. Sony says that this improvement was mainly due to a reduction in selling, general and administrative expenses, the above-mentioned improvement in product mix reflecting a shift to high value-added models and the favourable impact of exchange rates.

    Home Entertainment & Sound (HE&S)

    HE&S sales increased 7 percent year-on-year to ? 282.4 billion (US$ 2590 million) from ? 263.8 billion in Q2-2014. This increase was primarily due to a significant increase in sales of televisions and the favourable impact of foreign exchange rates. The company says that unit sales of LCD televisions increased significantly in Europe, North America, and Asia-Pacific, partially offset by a significant decrease in unit sales in Latin America. Audio and video  category sales decreased mainly due to a decrease in sales in Latin America reflecting adverse market conditions.

    Operating income of ? 8.0 billion (US$ 73 million) was recorded, compared to an operating loss of ? 12.1 billion in the same quarter of the previous fiscal year. This improvement was primarily due to cost reductions and an improvement in the product mix reflecting the shift to high value-added models, partially offset by a decrease in the average selling price of LCD televisions.

    Sony reveals that television sales increased 14.7 per cent year-on-year to ? 199.7 billion (US$ 1832 million) in Q2-2015. This significant increase was primarily due to the above-mentioned significant increase in unit sales of LCD televisions, and the favourable impact of foreign exchange rates.

    Operating income of ? 4.9 billion (US$ 45 million) was recorded, compared to an operating loss of ? 9.3 billion in Q2-2014. This improvement was primarily due to cost reductions and an improvement in the product mix of LCD televisions reflecting a shift to high value-added models, partially offset by a decrease in the average selling price.

    Devices

    Devices segment sales increased 23.1 percent in Q2-2015 to ? 247.7 billion (US$ 2273 million) from ? 203.1 billion in Q2-2014. This increase was primarily due to a significant increase in sales of image sensors reflecting higher demand for mobile products, an increase in sales of camera modules, as well as the favourable impact of foreign exchange rates. Sales to external customers increased 25.1 percent in Q2-2015 reveals the company.

    Operating income increased ? 17.7 billion to ? 29.6 billion yen (US$ 271 million). This increase was primarily due to the above-mentioned increase in sales of image sensors, the favourable impact of foreign exchange rates and an improvement in the results of the battery business.

    Pictures

    Pictures segment sales increased 2.4 percent to ? 182.2 billion yen (US$ 1671 million) in Q2-2015 from ? 177.8 billion in Q2-2104 primarily due to the favourable impact of the depreciation of the yen against the US dollar. The decrease on a US dollar basis was primarily due to a decrease in sales for Motion Pictures, reflecting lower theatrical revenues, partially offset by higher home entertainment and television licensing revenues.

    Theatrical revenues decreased as the same quarter of the previous fiscal year benefited from a higher number of theatrical releases. Home entertainment and television licensing revenues were higher as the current year benefited from the home entertainment releases of ‘The Amazing Spider-Man 2’ and ‘Heaven is for Real’ and from the television licensing sales of ‘Men In Black 3’ and ‘The Amazing Spider-Man’.

    Operating loss decreased ? 16.7 billion y-o-y to ? 1.0 billion (US$ 10 million), as Q2-2014 included higher marketing expenses as a result of a higher number of theatrical releases as well as the underperformance of ‘White House Down’.

    Music

    Music segment sales increased 1.5 percent in Q2-2015 to ? 116.8 billion (US$ 1071 million) from ? 115 billion. The decrease in sales on a constant currency basis is primarily due to lower music publishing and recorded music sales, partially offset by higher visual media and platform sales. On a constant currency basis, sales of music publishing decreased primarily due to a decrease in revenue outside of the US recorded music sales decreased slightly as the worldwide decline in physical and digital download sales were partially offset by higher digital streaming revenues. Visual media and platform sales increased mainly due to higher sales of animation products. Best-selling titles included Barbra Streisand’s ‘Partners’, Chris Brown’s ‘X’ and Sia’s ‘1000 Forms of Fear’.

    Operating income increased ?2.1 billion in Q2-2015 to ? 11.8 billion (US$ 108 million). This increase was primarily due to an improvement in equity in net income (loss) from EMI Music Publishing and a reduction in selling, general and administrative expenses.

    Financial services

    Financial services revenue increased 10.6 percent in Q2-2015 to ? 269.6 billion (US$ 2473 million) from ? 243.7 billion primarily due to an increase in revenue at Sony Life. Revenue at Sony Life increased 12.1 percent in the current quarter to ? 242.5 billion (US$ 2225 million), mainly due to an improvement in investment performance in the separate account resulting from a larger rise in the Japanese stock market compared to the same quarter of the previous fiscal year, as well as an increase in insurance premium revenue reflecting an increase in policy amount in force.

    Operating income increased ? 9.3 billion to ? 47.7 billion (US$ 437 million). This increase was mainly due to an increase in operating income at Sony Life. Operating income at Sony Life increased ? 9.3 billion y-o-y to ? 45.7 billion (US$ 419 million) primarily due to an improvement in investment performance in the general account.

    All Other

    All Other segment sales decreased 48.8 percent in Q2-2015 to ? 108.6 billion yen (US$ 997 million) from ? 212 billion in Q2-2014. This decrease was primarily due to a significant decrease year-on-year in unit sales of PCs reflecting Sony’s exit from the PC business.

    Operating loss increased ? 15.7 billion year-on-year to ? 18.2 billion (US$ 165 million). This deterioration was primarily due to a gain of ? 12.8 billion from the sale of certain shares of M3 recorded in the same quarter of the previous fiscal year and the recording of PC exit costs in the current quarter.

  • Q1-2015: Sony Corp reports 5.8 per cent top line, mobile communications segment disappoints

    Q1-2015: Sony Corp reports 5.8 per cent top line, mobile communications segment disappoints

    BENGALURU: Global behemoth Sony Corporation reported a growth of 5.8 per cent in its sales and operating revenue to JPY1.8909 billion (USD 17,920 million) for the quarter ended 30 June  2014 (Q1-2015) as compared to the year ago quarter’s  (Q-2014) JPY 1,711.40 billion.

     

    Note: (1) Rs 100 lakh = Rs100,00,000 = Rs 1 crore = Rs 10 million.

     

    (2) JPY = Japanese Yen

     

    (3) 31 Jul 2014 02:40 UTC – 1 Aug 2014 02:44 UTC

     

    JPY/INR close:0.59061 low:0.58542, high:0.59272

     

    The company’s operating income before taxes went up by 50.6 per cent to JPY68.4 billion in Q1-2015 as compared to the JPY 45.4 billion in Q1-2014. Sony’s net income attributable to its stockholders in Q1-2015 increased over seven fold (7.6 times) to JPY 26.8 billion in Q1-2015 as compared to the JPY 3.1 billion reported for the quarter ended 30 June 2014.

     

    One of the biggest disappointments for the company this quarter is the performance of its Mobile Communications (MC) segment which reported an operating loss of JPY2.7 billion as compared to an Op Inc of JPY12.6 billion in Q1-2014. (Please refer to Additional notes 1 and 2 below). The company attributes the loss primarily to an increase in marketing and R&D expenses which did not yield the expected increase in unit sales, primarily in the midrange handsets. For the full year, Sony has lowered unit sales forecast from 50 million units to 43 million units. 

     

    Of the nine segments that add to Sony’s numbers, major contributions to its bottomline in Q1-2015 were made by Financial Services (Operating Income or Op Inc of JPY 43.8 billion) followed by  Imaging Products and Solutions (Op Inc JPY 17.4 billion) Devices (Op Inc JPY 12.5 billion), and Music (Op Inc JPY 11.4 billion). Of note is the turnaround of the company’s Game and Network Services (GNS) segment which returned an Op Inc of JPY 4.3 billion in Q1-2015 as compared to an operating loss reported in Q1-2014 of JPY 16.4 billion.

     

    The company’s Home Entertainment & Sound (HE&S) segment reported improved Op Inc of JPY 7.7 billion from JPY 3.4 billion in Q1-2014. Sony’s Pictures segment also reported an improvement in its Op Inc in Q1-2015 to JPY 7.8 billion, which was more than double the JPY 3.7 billion in the corresponding quarter of last fiscal.

      

    The recently realigned All Other segment reported operating loss of JPY 18.4 billion in Q1-2015 (JPY 16.9 billion in Q1-2014). Sales of the All Other segment decreased 33.8 per cent year-on-year (a 39 per cent decrease on a constant currency basis) to JPY 128.8 billion. Sony says this decrease was primarily due to a significant decrease year-on-year in unit sales of PCs reflecting Sony’s exit from the PC business.  The operating loss of this segment increased primarily due to the recording of PC exit costs, partially offset by an improvement in equity in net income (loss) for Intertrust Technologies Corporation.

     

    Additional notes:

     

    (1) Sony realigned its business segments from the first quarter of the fiscal year ending 31 March 2015 (the current quarter) to reflect modifications to its organisational structure as of 1 April 2014, primarily repositioning the operations of the previously reported Game and Mobile Products & Communications (MP&C) segments.

     

    (2) In connection with this realignment, the previously-reported operations of the  network business which were included in All Other have been integrated with the previously-reported Game segment and are now reported  as the Game & Network Services  “G&NS”) segment. The previously reported Mobile Communications category which was included in the MP&C segment has been reclassified as the newly established Mobile Communications (MC) segment, while the other categories in the previously reported MP&C segment are now included in All Other. This includes the reclassification of the PC business into All Other.

     

    (3) In addition, as of the current quarter, the power supply business, which was previously included in the Devices segment, has been integrated into All Other to reflect modifications Sony made to its organisational structure as of 1 June 2014.

     

    (4) In connection with these realignments, the sales and operating revenue (sales) and operating income (loss) of each segment in the fiscal year ended 31 March 2014 have been reclassified to conform to the presentation of the fiscal year ending 31 March 2015.