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Sony Returns to Profit as Motion Pictures Drops 34 Percent

Sony Pictures
Courtesy of Sony Pictures

Japanese electronics and entertainment group Sony returned to profit for the year to March. But its Sony Pictures Entertainment division saw its profits drop by 34%.

Revenues in Sony’s ‘pictures division,’ which spans Sony Pictures Entertainment, media networks and television productions, were up by 7% at $8.3 billion. Operating income dropped to $341 million from $500 million previously.

At group level, sales dropped 1% to JPY8.11 trillion when expressed in Japanese Yen. In dollar terms revenues stood at $71.7 billion. The group turned a loss of JPY126 billion in 2014-15 into a profit of JPY148 billion. In dollar terms group profits were $1.31 billion.

Sony said that the motion pictures division suffered as a result of foreign exchange and in comparison with a strong previous year. “Spectre” ($881 million globally) and “Hotel Transylvania” ($469 million worldwide) were not enough to compare with the home entertainment revenues of “Heaven is for Real,” “22 Jump Street,” and “The Amazing Spider-Man 2.”

Media network sales increased and were particularly boosted by advertising in the U.K. and India. TV production sales increased due to subscription VoD revenues for “Breaking Bad,” “The Blacklist,” and “Better Call Saul.”

Theatrical underperformance of “The Walk” and “The Brothers Grimsby” also dented profits at the pictures division.

Sony’s music division grew revenues by 10% in Yen terms. In dollar terms sales reached $5.47 billion. Net profits from music gained 44% in Japanese currency terms. In dollar terms they reached $773 million.