PS4, smartphones power Sony to profit during third quarter

Game consoles, phones and exchange rates gave Sony a rosy quarter.

Sales of the PlayStation 4 and smartphones helped Sony turn a net profit of ¥27 billion (US$266 million) in the October to December quarter of last year, up sharply from a loss of ¥10.8 billion a year earlier.

The Tokyo-based electronics giant reported revenue of ¥2.4 trillion, jumping nearly 24 percent from ¥1.9 trillion a year before.

Foreign exchange rates, smaller TV losses, PS4 sales, and better operating income in its financial services business contributed to overall operating income gains of ¥44 billion to ¥90 billion, Sony said.

Revenue at Sony's gaming unit was up 65 percent in the quarter to ¥442 billion from ¥269 billion a year earlier. The PS4's launch in North America, Europe, and Latin America and a favorable foreign exchange rate helped offset a sharp decrease in sales of the earlier PlayStation 3 consoles, Sony said. Operating income of the gaming unit rose to ¥18 billion from ¥4.6 billion.

The Mobile Products & Communications division, which includes Sony's beleaguered PC business, also saw robust sales gains for the quarter, posting a 45 percent year-on-year revenue gain based on brisk smartphone sales. But the unit still posted an operating loss of ¥12.6 billion, an improvement from a loss of ¥21.3 billion a year before.

The long-struggling TV business fared better in the period, with revenue at the Home Entertainment & Sound division up nearly 25 percent to ¥404 billion. Operating income was ¥6.4 billion, climbing into positive territory from a loss of ¥8 billion the year before.

TV sales themselves jumped 40 percent in the period to ¥255 billion, but the segment still made an operating loss of ¥5 billion.

Sony had no comment about a fresh rumor this week that it will sell its PC business, known for the Vaio brand. It said it "continues to address various options for the PC business" in response to a report that it is in talks with Tokyo-based investment fund Japan Industrial Partners. The Nikkei newspaper report said the deal would be worth roughly ¥40 billion to ¥50 billion, and that Sony was exiting PCs to focus on smartphones.

Last week, Sony denied being in discussions with Lenovo over a sale of the PC arm.

Sony's PC market share has suffered, dropping to 1.9 percent of worldwide PC shipments in the third quarter of 2013, down from 2.3 percent a year earlier, according to data from IDC. Sony shipped 1.5 million units during the quarter, down from 2 million a year before, and ranked ninth in market share.

Sony has been struggling to revive its fortunes under President and CEO Kazuo Hirai, who took the helm in April 2012 after a year in which the company had its worst results since its founding in 1946. Hirai announced 10,000 job cuts and the divestiture of non-core businesses.

Hirai kept his promise to return Sony to profit in the year to April 2013 after it sold off billions of dollars worth of assets including its U.S. headquarters. But despite Hirai's "One Sony" management plan, the company has continued to struggle.

The company's financial year runs from April through March.

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuessonyfinancial results

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Tim Hornyak

IDG News Service
Show Comments

Essentials

Mobile

Exec

Budget

Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?