SPE Improvement Limits Sony’s First Half Profits Slide

TOKYO — Sony’s net profit for the first half of fiscal 2016 ending Sept. 30 fell JPY90.0 billion ($858 million) year-on-year to JPY26.0 billion yen ($248 million), the company announced.

Meanwhile operating profit dropped JPY83.0 billion ($792 million) in the same period to JPY101.9 billion ($1,009 million).

The company attributed the declines to poor results in its semiconductors segment, which includes sensors and camera modules, and components businesses, with includes batteries and recording media. One major impact to profit was this year’s earthquakes in Kyushu. Expenses from physical damage to Sony’s manufacturing sites amounted to $133 million and from idle facilities, $88 million.

Operating profit for the second quarter of fiscal 2016 also declined JPY28.7 billion ($274 million) year-on-year to 4.8 billion yen ($46 million). Meanwhile, operating profit fell JPY42.3 billion ($403 million) year-on-year to 45.7 billion yen ($436 million). The quarter extended from July 1 to September 30, 2016.

In the Pictures segment which includes both Sony’s film and television businesses, Sony reported an operating profit of JPY3.2 billion yen ($31 million) for the second quarter, a dramatic improvement over the JPY22.5 billion ($214 million) operating loss racked up in the same quarter of the previous fiscal year.

Sales also grew year-on-year to $1.90 billion, for a 4.6% year-on-year gain or a 25% increase in U.S. dollar terms, with “Ghostbusters,” “Sausage Party” and
“Don’t Breathe” contributing to the better results. Among other positives for the quarter were VoD licensing revenues from “The Crown” and “The Get Down,” as well as strong ad and subscription figures from India, Europe and Latin America.

For the fiscal year, which ends March 31, 2017, Sony expects Pictures segment operating profit to total JPY29 billion ($276 million), a decline of JPY9.5 billion ($91 million) compared the JPY38.5 billion ($367 million) recorded the previous fiscal year. This is somewhat lower than the company’s July forecast due to the softer-than-expected revenues from films and media networks.

Earlier this week the company warned that the sale of its battery business to Murata Manufacturing would cause operating profit for the year to be lower than earlier forecast.  The company now expects to record JPY60 billion yen ($572 million) in net profit, compared to its July prediction of JPY80 billion ($762 million).

It also revised its operating profit forecast to JPY270 billion ($2.6 billion), down 30% from its July prediction and 8% lower compared to the previous fiscal year.

The battery arm sale was part of Sony’s restructuring plan to focus on such key profit centers as games, sensors and entertainment.

More Biz

  • Gibson, Iconic Guitar Company, Said to

    Gibson, Iconic Guitar Company, Said to Be Nearing Bankruptcy

    TOKYO — Sony’s net profit for the first half of fiscal 2016 ending Sept. 30 fell JPY90.0 billion ($858 million) year-on-year to JPY26.0 billion yen ($248 million), the company announced. Meanwhile operating profit dropped JPY83.0 billion ($792 million) in the same period to JPY101.9 billion ($1,009 million). The company attributed the declines to poor results […]

  • David Glasser Fired by the Weinstein

    Weinstein Co. Board Fires COO David Glasser for Cause

    TOKYO — Sony’s net profit for the first half of fiscal 2016 ending Sept. 30 fell JPY90.0 billion ($858 million) year-on-year to JPY26.0 billion yen ($248 million), the company announced. Meanwhile operating profit dropped JPY83.0 billion ($792 million) in the same period to JPY101.9 billion ($1,009 million). The company attributed the declines to poor results […]

  • Rules Don't Apply review

    Warren Beatty Sought Wider 'Rules Don't Apply' Release Despite Grim Test Screenings

    TOKYO — Sony’s net profit for the first half of fiscal 2016 ending Sept. 30 fell JPY90.0 billion ($858 million) year-on-year to JPY26.0 billion yen ($248 million), the company announced. Meanwhile operating profit dropped JPY83.0 billion ($792 million) in the same period to JPY101.9 billion ($1,009 million). The company attributed the declines to poor results […]

  • Oh Seok-geun Korean Film Council

    New Leader Promises Reforms at Korean Film Council

    TOKYO — Sony’s net profit for the first half of fiscal 2016 ending Sept. 30 fell JPY90.0 billion ($858 million) year-on-year to JPY26.0 billion yen ($248 million), the company announced. Meanwhile operating profit dropped JPY83.0 billion ($792 million) in the same period to JPY101.9 billion ($1,009 million). The company attributed the declines to poor results […]

  • SOUTH KOREA OUTMandatory Credit: Photo by

    Actress Choi Hee-seo Looks Forward to a Promising Career

    TOKYO — Sony’s net profit for the first half of fiscal 2016 ending Sept. 30 fell JPY90.0 billion ($858 million) year-on-year to JPY26.0 billion yen ($248 million), the company announced. Meanwhile operating profit dropped JPY83.0 billion ($792 million) in the same period to JPY101.9 billion ($1,009 million). The company attributed the declines to poor results […]

  • The Prison Korean Cinema

    Korea's Box Office Faces a Drop in Admissions as Streaming Services Compete

    TOKYO — Sony’s net profit for the first half of fiscal 2016 ending Sept. 30 fell JPY90.0 billion ($858 million) year-on-year to JPY26.0 billion yen ($248 million), the company announced. Meanwhile operating profit dropped JPY83.0 billion ($792 million) in the same period to JPY101.9 billion ($1,009 million). The company attributed the declines to poor results […]

  • Andy Lo Hong Kong Writer Director

    Ambitious Filmmaker Andy Lo Wants Success in Both Hong Kong and China

    TOKYO — Sony’s net profit for the first half of fiscal 2016 ending Sept. 30 fell JPY90.0 billion ($858 million) year-on-year to JPY26.0 billion yen ($248 million), the company announced. Meanwhile operating profit dropped JPY83.0 billion ($792 million) in the same period to JPY101.9 billion ($1,009 million). The company attributed the declines to poor results […]

More From Our Brands

Access exclusive content