International Circuit

Sony Doubles Profit In FY Despite Lower Results At Mobile, Less Smartphones Sold

May 01, 2019

Sony’s net profit almost doubled for its full year to end March, jumping to JPY 916.3 billion from 490.8 billion, on revenues up 1 percent year-on-year to JPY 8.544 trillion. Earnings per share went higher to JPY 707.74 from 397.75. Results got a boost from games and network services, which offset the damage at mobile, where results were hit by less smartphone sales, inventory write-downs and restructuring charges. The number of smartphones sold fell in the year to a lower-than-expected 6.5 million, from 13.5 million the year earlier. Looking ahead to full year 2019, Sony is guiding for revenues of JPY 8.800 trillion and an operating profit of JPY 810 billion.

Declines at mobile offset by gains at games

By segment, the profit loss at Mobile Communications (MC) came in a bit lower than forecast at JPY 97.1 billion from a loss of 74.9 billion the year earlier, and with revenues falling to JPY 498.0 billion from 723.7 billion. At Semiconductors, the operating profit declined to JPY 143.9 billion from 164.0 billion despite revenues lifting to JPY 879.3 billion from 850.0 billion. The same trend could be seen at Financial Services, with the profit going lower to JPY 161.5 billion from 178.9 billion, on revenues rising to JPY 1.282 trillion from 1.228 trillion, and at Mobile Communications (MC), where the loss widened to JPY 97.1 billion from a loss of 27.6 billion year-on-year.

Meanwhile, gains were marked at Games & Network Services (G&NS), with revenues lifting to JPY 2.310 trillion from 1.943 trillion, and the operating profit advancing to JPY 311.1 billion from 177.5 billion. Home Entertainment & Sound (HE&S) revenues went higher to JPY 1.155 trillion from 1.222 trillion, while the operating profit climbed to JPY 89.7 billion from 85.8 billion. At Pictures, revenues went lower to JPY 986.9 billion from 1.011 trillion, but the profit went up to JPY 54.6 billion from 41.1 billion. Finally, at Imaging Products & Solutions (IP&S), revenues increased to JPY 670.5 billion from 655.9 billion and the profit went higher to JPY 84 billion from 74.9 billion.

Quarterly profit also jumps

For the fourth quarter, the net profit leaped to JPY 87.9 billion or JPY 68.23 per share from a loss of 16.8 billion or 13.30 per share. , while revenues lifted 9 percent to USD 2.127 trillion.

Looking at segment revenue, Mobile Communications showed a narrower loss, to JPY 41.1 billion from a loss of 44.6 billion, though revenues fell to JPY 110.5 billion from 153 billion. The view was not so good for Pictures, where revenues slid to JPY 294.2 billion from 300.9 billion and the profit declined to JPY 27.1 billion from 32.4 billion, or at IP&S (imaging products and solutions), where revenues weakened to JPY 154.4 billion from 162.4 billion and the profit sank to JPY 1.8 billion from 6.9 billion.

The profit at G&NS (games and network services) tripled to JPY 63.9 billion from 19.6 billion, on revenues going up to JPY 498.1 billion from 444.6 billion. At HE&S (home entertainment, sound), revenues advanced to JPY 219.6 billion from 235.1 billion, while the net result improved to a profit from a loss. That trend was even stronger at Semiconductors, where the profit amounted to JPY 20.3 billion from a loss of 1.3 billion, on revenues higher at JPY 430.3 billion from 272.7 billion.―Telecompaper