BUSINESS

Sony logs 180.5% growth in operating income in Q1

August 21, 2017

SONY Corporation announced that its operating income for the first quarter of 2017 posted a 180.5 percent year-on-year increase against the same period last year. The operating profit was attributed mainly to the increasing sales of Imaging Products and Solutions (IP&S).

Concluding June 30, 2017, the operating income for the quarter amounted to$1.407 billion (¥157.6 billion), up 180.5 percent from $501.78 million (¥56.2 billion) in Q1 2016. The sales and operating revenue for Q1 reached $16.59 billion (¥1.9 trillion), a 15.2 percent increase from $14.4 billion (¥1.61 trillion) from the same period last year.

The significant increase in the operating income was attributed to the improvements of operating results in the Imaging Products & Solutions (IP&S) segment. The IP&S revenue increased from $1.09 billion (¥122.2 billion) to $1.39 billion (¥155.6 billion), while operating income for the division rose 209.1 percent to $207 million (¥23.2 billion) in Q1 2017 from $66.9 million (¥7.5 billion) of Q1 2016.

The Home Entertainment & Sound (HE&S) segment sales increased 9 percent year-on-year to $2.29 billion (¥256.9 billion). This increase was primarily due to an improvement in the product mix reflecting a shift to high value-added models, partially offset by a decrease in unit sales, both in televisions. The operating income increased from $20 million (¥2.3 billion) year-on-year to $202 million (¥22.6 billion).

“Our growth strategy across the Middle East and Africa region is aligned with our global strategy. We are confident that the launch of our new flagship models and most innovative products – BRAVIA OLED TV A1 and α9 – will contribute to the overall growth. With a more focused product portfolio, we aim to continue to achieve our top-line growth and overall strategic objectives,” said Taro Kimura, Managing Director, Sony MEA.

Meanwhile, Semiconductor sales rose 41.4 percent year-on-year to $1.82 billion (¥204.3 billion) for the quarter, which was partly due to an increase in unit sales of image sensors for mobile products. As a result, operating income for the division rose to $494 million (¥55.4 billion) from the $388 million (¥43.5 billion) reported for the same quarter in the previous year.

While sales for Sony's Mobile division dropped 2.5 percent to $1.61 billion (¥181.2 billion), operating income rose 771.3 percent to $32 million (¥3.6 billion), mainly due to reductions in operating costs and R&D expenses. Financial Services revenue rose to $2.7 billion (¥303.2 billion) while the Music income increased 57.6 percent year-on-year to $223 million (¥25 billion). The Games & Network Services income, on the other hand, declined 59.7 percent year-on-year, mostly due to the absence of a highly profitable first-party software title released in the same quarter of the previous.

For the fiscal year ending March 31, 2018, Sony is expecting $71.43 billion (¥8.3 trillion) in sales and operating revenue and $4.5 billion (¥500 billion) in operating income. — SG


August 21, 2017
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