Sony Q2 Profit Soars; Lifts FY18 Earnings, Sales View

Nov 01, 2017, 00:51
Sony Q2 Profit Soars; Lifts FY18 Earnings, Sales View

Sony is expecting its first record group operating profit in 20 years for fiscal 2017, the company announced Tuesday, a comeback attributed to a balanced business model that generates income from wide-ranging operations that extend from electronics to finance.

Its net profit increased $1.11 billion (126.0 billion) year-on-year to $1.16 billion (130.9 billion yen), while operating profit gained $1.4 billion (158.5 billion yen) year-on-year to $1.81 billion (204.2 billion yen).

Tokyo-based Sony, which makes Bravia TVs, PlayStation 4 video-game consoles and Wyclef Jean recordings, recorded a July-September profit of 130.9 billion yen ($1.2 billion), up from 4.8 billion yen reported past year. The operation includes recorded music, publishing and the Japanese visual media and videogame unit, which is included in Sony Music Entertainment Japan.

Quarterly revenues surged by over 22% to ¥2.1tn versus analysts' forecasts of ¥‎1.86n. This significant increase was primarily due to the impact of foreign exchange rates and an increase in Game & Network Services segment sales. Earnings per share grew to 101.35 yen or $0.90 from 3.76 yen past year.

Music also continued to be profitable for Sony, with operating income nearly doubling to $287 million (¥3.25 billion) on sales of $1.83 billion (¥206.6 billion), boosted by DJ Khaled's Grateful album, strong sales of local artists in Japan and Fate/Grand Order, a mobile game popular in Japan.

Sony said its results benefited from the strong worldwide box office performance of "Spider-Man: Homecoming" and the popularity of a game application for mobile devices called "Fate/Grand Order".

But Sony said things were looking up at the movie division.