Sony raises forecast of win

Sony raises forecast of win

Sony has raised its profit forecast for the soon to end fiscal year after a strong quarter – but new challenges loom on the horizon.

In the important games business, sales of the playstation 4 console were under pressure in the christmas quarter. And sales of sony smartphones, which have been weak for a long time, are falling even more steeply than expected.

Sony now expects to sell 6.5 million smartphones in the full fiscal year to the end of march. The previous forecast was 7 million – and in the previous fiscal year, the company was still able to get rid of 13.5 million phones.

Sony only sold 1.8 million smartphones in the christmas quarter – the market leaders samsung and apple each sold around 70 million. According to estimates by sony, the division will post an operating loss of 95 billion yen (just over 760 million euros) for the year. The group wants to score points with its strong camera technology in the phones, among other things – but has been overrun in the smartphone market primarily by chinese manufacturers.

In sony’s biggest division by far, the games business, the playstation 4 is showing signs of fatigue. Sales fell from 9 to 8.1 million units compared with the previous year’s christmas quarter. They have already been boosted by discount campaigns, which caused the division’s operating profit to fall by 13 percent to 73.1 billion yen (585 million euros). Sales, on the other hand, rose ten percent to 790.6 billion yen (6.3 billion euros) thanks to strong sales of games software.

Music business was a key profit driver in the quarter – as the complete acquisition of EMI music publishing at the end of last year resulted in a valuation book gain of around 117 billion yen. The division contributed an operating profit of 147.1 billion yen (just under 1.2 billion euros) to the result. Sony manages rights to over four million songs after acquisition – a good deal thanks to growing streaming revenues.

Business was also good with films and TV series, digital cameras and consumer electronics.

Sony raised its profit forecast for the fiscal year to 835 billion yen. One reason for this was also tax credits in the USA, sony explained. Previously, the company had expected revenues of 705 billion yen. Sales of 8.5 billion yen were slightly lower than previously expected, partly due to lower revenues in the semiconductor business. In the first nine months of the current fiscal year, sony has already earned 828.4 billion yen, 63.2 percent more than in the same period of the previous year. Sales decreased by 0.8 percent to 6.54 billion yen.

Like this post? Please share to your friends:
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: