You will be redirected back to your article in seconds

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.


More Biz

  • Harvey Weinstein

    Harvey Weinstein Accusers Near Settlement in Bankruptcy Case

    Attorneys in the Weinstein Co. bankruptcy case say they are getting close to reaching a settlement that would compensate Harvey Weinstein’s sexual misconduct accusers. The company went bankrupt last year, as it faced hundreds of millions of dollars in debt and numerous civil suits on behalf of Weinstein’s alleged victims. The company sold to Lantern [...]

  • Ari Emanuel Endeavor

    Endeavor IPO Filing Offers Details of Company's Financials, Leadership Pay Packages

    Endeavor’s IPO filing Thursday offers a hard look at the company’s financial performance during the past three years during a period of rapid growth for the company that’s home to UFC, WME, Professional Bull Riders and a clutch of other assets. Endeavor is generating solid free cash flow from operations and healthy adjusted earnings for [...]

  • Rolling Stones Give up 'Bittersweet Symphony'

    Rolling Stones Give 'Bittersweet Symphony' Songwriter Royalties to the Verve's Richard Ashcroft

    UPDATED: Nearly 22 years after the Verve’s “Bittersweet Symphony” was released, the Rolling Stones’ Mick Jagger and Keith Richards have assigned to Richard Ashcroft the songwriter royalties and rights from the song, which samples one of their compositions, and removed their writing credits. The news was first reported by the BBC and New Musical Express. [...]

  • Pamela Anderson

    Pamela Anderson Fears Julian Assange 'Won't Survive' Extradition to U.S.

    After previously speaking out in support of her friend and WikiLeaks founder, Julian Assange, Pamela Anderson doesn’t think he would survive an extradition from the U.K. to the U.S. “I hope he gets out of there, but I don’t think he’ll survive extradition. It can’t happen. It’s not even an option. We can’t have him [...]

  • Jane Austin SAG AFTRA

    SAG-AFTRA Secretary-Treasurer Jane Austin Running for President

    Jane Austin, the National Secretary-Treasurer of SAG-AFTRA, has become the third candidate for the presidency of the performers union, joining incumbent Gabrielle Carteris and Matthew Modine. Austin is running as an independent for the top post at SAG-AFTRA, which has 160,000 members. Carteris will seek re-election as the head of the ticket for the Unite [...]

  • Endeavor

    Endeavor Group Holdings Files for Initial Public Offering

    Endeavor Group Holdings, the parent company of talent agency WME, has filed to go public in a development that has long been expected. The company, which filed a Form S-1 with the Securities and Exchange Commission on Thursday, plans to list on the New York Stock Exchange under the ticker “EDR.” The number of shares [...]

  • Lisbeth R Barron Investment Banker

    Investment Banker Lisbeth R. Barron on How She Became a Broadway Deal Specialist

    If you want to get a deal done on Broadway, call Lisbeth R. Barron. Barron is a veteran investment banker who launched her own shingle, Barron Intl. Group, in 2015. She has brokered a slew of deals throughout her career — which has included stops at S.G. Warburg and Bear Stearns — involving companies and [...]

More From Our Brands

Access exclusive content