Sony Corp. Reports Q2 Net Loss, Digital Music Rises
October 31, 2013 at 5:15 AM (PT)
SONY CORPORATION has cut its full-year profit outlook, as its second quarter net loss widened primarily due to a loss in its movie business.
SONY reported a net loss for the three months ended SEPTEMBER 30th widened to Y19.3 billion ($196 million) from a loss of Y15.5 billion a year earlier. Operating profit fell 51% to Y14.8 billion from Y30.3 billion, even as revenue rose 11% to Y1.78 trillion from Y1.6 trillion.
THE WALL STREET JOURNAL notes, "SONY's movie and music businesses have come under the spotlight this year since hedge-fund investor DANIEL LOEB called for a spin-off of the entertainment division through an initial public offering."
SONY MUSIC sales increased 15.9% year-on-year to Y115 billion ($1.173 million) "due to the favorable impact of the depreciation of the yen against the U.S. dollar," wrote SONY. "Sales were essentially flat on a constant currency basis due to a decrease in Visual Media and Platform sales resulting from a decrease in home entertainment revenues for animation products, offset by a year-on-year increase in sales of Recorded Music due to continuing growth in digital revenues and the success of a number of recent releases.