Friday 22 March 2019

Taro Kimura, managing director, Sony - MEA

Sony operating profit up 180.5pc in Q1

UAE, August 20, 2017

Sony Corporation has reported an operating income of $1.407 billion for the quarter concluding on June 30, 2017 (Q1), up 180.5 per cent from $501.78 million in Q1 2016.

The increase was attributed mainly to the growing sales of imaging products and solutions (IP&S), said a statement.

The sales and operating revenue for Q1 reached $16.59 billion (¥1.9 trillion), a 15.2 per cent increase from $14.4 billion (¥1.61 trillion) from the same period last year, it said.

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 per cent to $207 million (¥23.2 billion) in Q1 2017 from US$66.9 million (¥7.5 billion) of Q1 2016, it added.

The home entertainment and sound (HE&S) segment sales increased 9 per cent 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), it said.

Taro Kimura, managing director, Sony Middle East and Africa (MEA), said: “Our growth strategy across the MEA 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 a9 – 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,” he said.

Meanwhile, semiconductor sales rose 41.4 per cent 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 per cent to $1.61 billion (¥181.2 billion), operating income rose 771.3 per cent 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 per cent year-on-year to $223 million (¥25 billion).

The games and network services income, on the other hand, declined 59.7 per cent 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 US$71.43 billion (¥8.3 trillion) in sales and operating revenue and $4.5 billion (¥500 billion) in operating income, it stated. – TradeArabia News Service

Tags: | Sony | profit | Q1 |

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