Net loss of £122m in three months to the end of June reflects impact of PlayStation cyber attack and Japanese earthquake
Sony has reported a loss in the second quarter as operating profit plunged 59%, reflecting the impact of the PlayStation cyber attack and the Japanese tsunami, despite strong performances from its film and music divisions.
The Japanese consumer electronics and entertainment giant reported a 59% fall in operating profit year on year in the three months to the end of June to ¥27.5bn (£216m). The company reported a net loss of ¥15.5bn (£122m).
However, Sony said: "Business operations that had been negatively affected by the earthquake are recovering faster than anticipated".
Sony Music reported a 61% year-on-year increase in operating income to ¥12.1bn in the three months to the end of June, thanks to big sales of releases including Adele's 21, music from the cast of Glee and Foo Fighter's Wasting Light.
The company said that to a "lesser degree" the division was also boosted by a favourable legal settlement over copyright infringement. Sony Music reported a 0.6% fall in revenue to ¥109.6bn.
Film studio Sony Pictures increased operating income by 50% year on year to ¥4.3bn, with revenues up 9.3% to ¥144bn. Sony Pictures benefited from a surge in DVD sales of titles including The Green Hornet and Battle: Los Angeles. Theatrical releases did not fare so well in comparison with the same quarter last year, when Sony had films including The Karate Kid in cinemas.
Sony's consumer products and services division, which includes its PC, TV and PlayStation businesses, reported an 18% drop in revenue to ¥732bn and a 94% fall in operating income to ¥1.7bn. The company said this was primarily due to a decrease in TV sales in the US and Europe.
Sony said it had also incurred ¥5.3bn in charges related to the earthquake and tsunami in its domestic market.
The company said this was mainly "incremental expenses" including restoration costs such as repair, removal and cleaning costs of buildings, machinery and equipment as well as inventories at manufacturing sites and warehouses damaged by the natural disaster.
Sony kept its operating profit forecast for the year steady at ¥200bn, but cut its full-year earnings by 25% to ¥60bn, from an original projection of a profit of ¥80bn.
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Source: http://www.guardian.co.uk/technology/2011/jul/28/sony-reports-second-quarter-loss
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