Sony Reports Quarterly Loss Due To Box Office Weakness
Sony Corporation has announced today that they saw a loss in the summer quarter despite strong sales of smartphones. The losses were largely due to Sony’s movie division. Sony cited the movie “White House Down” as a major reason for the weakness in the movie division. In the same period a year earlier, Sony’s movie division saw strong sales due to “The Amazing Spider-Man.”
Sony’s movie division contributed to a net loss of 19.3 billion yen ($197 million) for the most recent quarter ended September 30th. One year earlier, Sony saw a loss of ¥15.5 billion. Sony downgraded their outlook for the full financial year, which ends next spring. Sony said that they are now expecting operating earnings of ¥170 billion, which is down from their previous forecast of ¥230 billion.
The Sony PlayStation 4 gaming console is expected to boost Sony’s sales when it goes for sale next month. For Sony’s fiscal first quarter (ended June 30th), investors were surprised about the strong sales of smartphones. The mobile division saw sales increase 39% in the most recent quarter, largely due to the weakness of the yen.
Sony posted overall sales at ¥1.78 trillion, which is up from ¥1.6 trillion a year earlier. Those results were also helped by the weakness of the yen.