Sony Music suffers 22% sales drop

Decline of physical music sales cited

NEW YORK -- During the period ending Dec. 31, Sony Music Entertainment generated 105.2 billion yen ($1.16 billion), a 22% decrease on a dollar basis compared with the same quarter of the previous fiscal year. Sony attributed the sales drop to the decline of the physical music market.

Operating income increased 10% year-over-year primarily because of the consolidation of SME in the current quarter. But on a pro forma basis, SME operating income of 14.4 billion yen ($158 million) represents a 41% decline from the prior year when its results were not consolidated within Sony's results.