Daily Management Review

Sony reports record profit


In the first fiscal quarter, Japanese Sony increased net profit by 2.8 times due to good sales of electronics, PlayStation consoles and components for smartphone cameras, as well as the sale of shares in Spotify Technology SA.

Jamie McCall via flickr
Jamie McCall via flickr
As reported in the company's press release, its net profit in April-June amounted to 226.4 billion yen ($ 2.076 billion), or 174.8 yen per share, compared to 80.9 billion yen, or 62.7 yen per share, received over the same period last year.

Revenues rose 5.1% to 1.954 trillion yen compared to 1.858 trillion yen.

Operating profit increased to 195 billion yen from 157.6 billion yen a year earlier.

Sony's quarterly revenue in video games and video game consoles grew 124% to 472.1 billion yen, music business 12.9%, to 181.5 billion yen. At the same time, revenue in the cinema sector decreased by 30.7%, to 175.1 billion yen, as well as semiconductor revenue by 2%, to 202.2 billion yen.

Revenues in the mobile phone business fell 48.7% to 132.5 billion yen, while the unit recorded an operating loss of 10.8 billion yen against a profit of 3.6 billion yen a year earlier.

Sony expects to receive net profit of 500 billion yen and revenue of 8.6 trillion yen on the basis of the current fiscal year, which will end on March 31, 2019. Thus, the forecast was upgraded from the April estimate of 480 billion yen and 8.3 trillion yen, respectively.

The company did not change the forecast of operating profit (670 billion yen), but at the same time it improved expectations about this figure for the video game console and set-top boxes to 250 billion yen from 190 billion yen, semiconductor division - up to 120 billion yen from 100 billion yen. At that, the forecast of the unit for the production of smartphones is worsened - now an operating loss of 30 billion yen is expected against a loss of 15 billion yen earlier.

In its estimates, Sony proceeds from the forecast of the average dollar rate of 110 yen and the euro - 127 yen (in April - 105 yen and 125 yen, respectively).

source: bloomberg.com