Mobile communications and goodwill impairments again hit Japanese electronics and entertainment group Sony, dragging the company back into loss for the first half of the year — after it reported surprise profits in the first quarter.
Sales in the second quarter of the year grew by 7% to $17.4 billion. Net losses for the July to September period were reported as $1.25 billion. Net losses for the six months from April to end Sept. amounted to $1 billion (JPY109 billion).
The ‘Pictures’ division, which encompasses much of the entertainment production and distribution activities saw sales grow by 2% in Japanese Yen in the quarter, but slip by 3% to $1.67 billion in US dollar terms. Quarterly losses at the Pictures division were reduced in comparison with the same quarter last year and stood at $10 million. That put first half profits for the Pictures division at $62 million.
Theatrical revenues were down in comparison with the same quarter last year, when more movies were released. But strong performances in home entertainment were achieved by “The Amazing Spider-Man 2,” and “Heaven is for Real.” TV licensing of “The Amazing Spider-Man” and “Men In Black 3” were also strong.
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The group reduced its full year forecast of the Pictures division’s revenues and operating profit. It is now forecasting revenues of JPY860 billion ($7.89 billion) and operating income of $530 million.
Having been obliged to issue new guidance in September, reflecting the problems in its mobile division, Sony left unchanged its forward guidance for the group’s full year at a net loss of JPY230 billion or $2.11.
Prior to the results announcement Sony shares were trading up by 1.6% in Tokyo at JPY2087.5. That was a significant lag compared with the Nikkei-225 index which was up by a spectacular 4.4% in the morning trading session, boosted by surprise Bank of Japan measures to loosen monetary policy and restimulate and reinflate the economy. Following the results, Sony shares drifted back to JPY2,072, a gain of just 0.8%.
The promised central bank moves weakened the Japanese Yen, something which should boost the local currency value of Sony’s overseas sales.
