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Cyber Hack Confirmed As Costing $15 Million As Sony Reports Increased Results

TOKYO — Sony has belatedly announced consolidated results for the third quarter of its 2014-15 financial year. It also revealed operating profits at Sony Pictures Entertainment higher than previously reported.

The company had previously unveiled third quarter figures at a press conference on Feb. 4, but last year’s cyber attack on Sony Pictures Entertainment delayed consolidated results computations.

The new calculations show SPE’s operating profit for the third quarter, ending Dec. 31, 2014, increased from JPY2.4 billion ($19.8 million) to JPY6.2 billion ($51 million). This still represents a 74% drop from the $200 million operating profit recorded in 2013-14.

Total sales in the ‘Picture’ segment declined 8% year-on-year to $1.71 billion. Sony attributed the slide to lower home entertainment and theatrical revenues. TV production sales fell since current shows have not generated the same revenues as the now-ended smash “Breaking Bad.”

The company confirmed that costs to repair and investigate the November cyber attack on SPE amounted to $15 million in the current quarter, but said in its latest forecast that the impact of the attack on its consolidated results for the full financial year ending on March 31, 2015, “will not be material.”

Sony also released an unusually detailed breakdown for SPE’s third quarter, including US dollar aggregated results that differ from Picture segment results in the earnings announcement, with operating profit declining 79% year-on-year to $53 million and total sales dropping 20% to $1.79 billion. The biggest release in the third quarter was “Fury,” which earned a worldwide total of $194 million, and compared with the $209 million from “Captain Phillips,” in the same quarter of 2013.

The company also confirmed its February forecast for the full 2014-15 year to March. It said that full year revenues will be JPY8,000 billion, compared with a forecast made in October of JPY 7,800 billion, and actual 2013-14 sales of JPY7,767 billion ($64 billion). Forecast net losses were reduced to JPY170 billion, compared with the October forecast of JPY230 billion, and actual 2013-13 losses of JPY128 billion.


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