Movie biz is rare bright spot for Sony in Q2

Empty

Sony posted a 72% drop in net profit for the three months ending Sept. 30 as the company suffered flat sales mostly because of a stronger yen as well as the first-time inclusion of results from Sony Ericsson and Sony BMG.

Don't blame film and video games for the lesser results, though.

Net second-quarter profit dropped to ¥20.8 billion ($214.4 million) on sales of ¥2.07 trillion ($27.8 billion), down 0.5% year-over-year. Operating income fell 90%.

"If today's foreign exchange conditions — 97-98 yen to the dollar — continue, full-year earnings would have to be revised downward by another ¥70 billion ($720 million)," Sony CFO Nobuyuki Oneda said, adding that Sony could hedge to offset losses of about ¥30 billion ($308 million).

Sony shares are down 68% this year, sliding faster than the underlying Nikkei stock index, which has lost 56% in the same period.

The faint bright spots from Sony's gaming and film segments tempered the dropping earnings.

Sony Pictures posted a 3.4% rise in quarterly sales to ¥196.1 billion ($2 billion) on the back of a strong worldwide showing from "Hancock," "Step Brothers" and "Pineapple Express." Losses in the gaming segment narrowed to $379 million on a 10% increase in sales.

Reuters contributed to this report.
comments powered by Disqus