Sony Corporation forecasts 30% surge in annual operating profit for Fiscal Year ending March 31, 2019
Company achieves 17% rise in Q2 2018 operating income due to strong gaming software sales
Dubai, UAE – 5 November 2018 – Following a successful second quarter in 2018, Sony Corporation is forecasting a 30 per cent increase in its annual consolidated operating income, driven by the impact of the consolidation of EMI Music Publishing and upward revisions in several segments particularly in the Game & Network Services segment.
Sony now expects annual operating income of US$7.7 billion (¥870 billion), a significant rise from the first quarter’s outlook of US$6 billion (¥670 billion). Meanwhile, the consolidated sales forecast has increased US$893 million (¥100 billion) from the previous quarter forecast of US$76.7 billion (¥8.6 trillion).
For the second quarter ending 30 September 2018, Sony Corporation registered a 17 per cent year-on-year increase to US$2.14 billion (¥239.5 billion) and a 6 per cent year-on-year increase to US$19.5 billion (¥2.18 trillion) on its sales and operating revenue as compared to the same quarter of the previous fiscal year.
“We got off to a strong start in Q1 FY2018 and were able to sustain momentum in the second quarter. We remain confident of achieving our targets in 2019, given that we have a strong line-up of high-value products that we will launch in the market. Here in the region, we are focusing our efforts on strengthening sales of high-value products such as the new BRAVIA Master Series, the WH-1000XM3 noise cancelling headphones and our top-of-the-line range of mirrorless cameras,” said Fumiatsu Hirai, Managing Director, Sony Middle East and Africa.
The positive growth in Sony’s financial results was spurred by strong sales in the Game & Network Services (G&NS) segment, which includes gaming software and the PlayStation® Plus (“PS Plus”). The G&NS division achieved a 27 per cent year-on-year increase on its second quarter sales of US$4.9 billion (¥550.1 billion) as compared to last year’s US$3.8 billion (¥433.2 billion).
The Imaging Products & Solutions (IP&S) segment also recorded a 5 per cent rise year-on-year and achieved US$1.46 billion (¥163.9 billion) sales and an operating income of US$195 million (¥21.8 billion) in the second quarter. Although there is a decrease in unit sales of digital cameras due to market impact, the segment’s continuous growth was attributed to an increase in sales of high value-added products particularly in interchangeable mirrorless cameras and lenses as well as an increase in sales of high value-added products.
Meanwhile, for the Home Entertainment & Sound (HE&S) segment, the second quarter sales decreased by 9 per cent year-on-year to US$2.45 billion (¥274.9 billion) while the operating income recorded was flat year-on-year, achieving US$218.7 million (¥24.5 billion) for the same period compared to last year. The result was due to a decrease in unit sales of televisions and a shift to high value-added models that were offset by the impact of foreign exchange rates and lower sales.
About Sony Middle East and Africa:
Sony Middle East and Africa FZE is a 100% subsidiary of Sony Corporation and is the regional headquarters for the Middle East and Africa regions. The company is engaged in the business of Sony Consumer Electronics, Recording Media and Energy, Mobile Electronics (Car Audio) and Computer Entertainment (PlayStation) products in more than 40 countries in the region.
Apart from stock operations in the Jebel Ali Free Zone Establishment in Dubai, Sony Middle East and Africa leads execution of various logistics, sales, marketing, advertising and customer services activities through its business partners and representative offices. 262 accredited third party service centers reinforces Sony’s presence in key markets in the region.