Sony Records $1.43 Billion In Profit From April To June 2017

Kristi Paul
August 1, 2017

The profitability of the game business is expected to improve in the second half of the business year as more titles get released, Sony said.

Sony has been trying to diversify its revenue sources, and the quarter saw most divisions - music, mobile phone, TV, camera - post profits.

In fiscal 2017, attributable net income was 73.3 billion yen, operating income was 288.7 billion yen and sales and operating revenues were 7.60 trillion yen.

Game & Network Services sales were up 5.4% year-on-year to 348.1 billion yen ($3.16 billion), which Sony says is thanks to an increase in PS4 software sales, as well as the "contribution" of PlayStation VR, but it was partially offset by the September 2016 PS4 price drop. Previous year saw the release of Uncharted 4: A Thief's End in this period.

Quarterly operating profit easily topped a consensus estimate of 133 billion yen.

The semiconductor business was the biggest contributor to the earnings, turning from a year-earlier loss of 43.5 billion yen to a profit of 55.4 billion yen.

- Digital download revenue, meanwhile, fell 22.1 percent to $116.5 million (12.94 billion yen), down from the $153.66 million (16.6 billion yen) tallied in the first quarter of 2016. Other revenue, including licensing, merchandising, and live performances, saw a slight 9.6% increase to ¥14.883 million ($134.7 million).

Its Sony Music division reported an operating income of ¥25 billion ($227 million), up 57.6% over Q1 2016.

The company said noteworthy projects to watch during the summer are include Arcade Fire's Everything Now, Foo Fighters' Concrete and Gold, Foster the People's Sacred Hearts Club, French Montana's Jungle Rules, Kesha's Rainbow, LCD Soundsystem's American Dream, Old Dominion's Happy Endings, Laurent Voulzy's Belem and albums from David Gilmour and Indochine. In light of the current forecast, the company expects to ship 18 million PlayStation 4 systems by the end of its new fiscal year.

Also helping Sony's bottom line was the absence of the damage it suffered from the April 2016 natural disaster in southwestern Japan that shut down its semiconductor plant, and gains from insurance recoveries related to that quake, it said. Analysts had projected ¥133.3 billion ($1.2 billion).

Other reports by VideoGamingPros

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