Sony nearly doubles first-half net profits

Author: 
AFP
ID: 
1540886899179187400
Tue, 2018-10-30 08:02

TOKYO: Sony announced on Tuesday that its six-month net profit
had nearly doubled from last year to a record high, and upgraded
its annual forecasts, with games and movies leading the way.
The electronics and entertainment giant said April-September net
profit reached ¥399.4 billion ($3.5 billion), up 88.7 percent from
a year ago and marking its best performance for the period.
Operating profit and sales were both up, with video games driving
the good news, including blockbuster software titles like “God of
War” and “Spider-Man.”
Sony’s quality sensors for smartphone cameras saw explosive
demand, becoming a major pillar of the firm’s revenue.
The movies and music segments also contributed to growing profits,
though Sony’s mobile phone business continued to struggle.
The robust six-month performance, with operating profit up 20.1
percent at ¥434.5 billion and sales rising 5.5 percent to ¥4.1
trillion, prompted Sony to upgrade outlook for the second half.
It now projects an annual net profit of ¥705 billion, which would
mark a new all-time high, along with annual operating profit of
¥870 billion and sales of ¥8.7 trillion.
Sony had previously forecast a moderate slowdown for the rest of
the year.
“Various areas including music as well as the game and network
services field” are doing better than earlier thought, the firm
said.
Among movies, television licensing revenues from “Jumanji:
Welcome to the Jungle” and “Peter Rabbit” added to its
sales.
Foreign exchange rates and strong sales of Sony’s paid membership
game service also contributed to the optimistic annual
expectations, the company said.
However, for the mobile phone segment, Sony braced for further
struggles particularly with smartphone sales falling in Europe and
Japan.
Sony expected to see a loss from the segment despite attempts to
cut costs. The firm has struggled to win market share against
giants Samsung and Apple, and faces pressure from Chinese
manufacturers as well.
Analysts said the company results showed it was entering a growth
phase after a remarkable recovery that followed several painful
years of huge losses.
“Its game sector has continued spearheading its recovery. Strong
titles offset slowing sales of PlayStation 4 consoles,” Hideki
Yasuda, an analyst at Ace Research Institute in Tokyo, said ahead
of the company’s announcement.
“Other than mobile businesses, I have not seen any major risks
surrounding Sony,” he said.
Yasuo Imanaka, an analyst at Rakuten Securities in Tokyo, said:
“Sony has already completed a full-fledged comeback and is now
heading toward a new growth phase.”
“The only concern is its mobile phone business. Sony is required
to revamp the sector drastically,” he said before the
announcement.

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Source: FS – All-News-Economy
Sony nearly doubles first-half net profits