Sony Bullish on PlayStation as It Swings to Profit
October 29 2015 - 3:10AM
Dow Jones News
TOKYO—Sony Corp. swung to a fiscal second-quarter profit from a
year-earlier loss on solid sales of its PlayStation 4 videogame
console and image sensors, though the company maintained its
outlook for the year, which is below market expectations.
For the quarter ended Sept. 30, Sony swung to a profit of ¥ 33.6
billion ($278.2 million) from a year-earlier loss of ¥ 104.2
billion. In the year-earlier quarter, it wrote down the value of
its smartphone business. Sales for the quarter were flat at ¥ 1.89
trillion and operating profit rose to ¥ 88 billion.
Analysts, on average, expected a net profit of ¥ 26.4 billion, ¥
1.88 trillion in revenue and ¥ 82.2 billion in operating profit.
For the year ending in March, the company continues to expect a net
profit of ¥ 140 billion.
The results show that Sony's turnaround still has momentum,
after years of restructuring in its consumer electronics
operations. While Sony's smartphone operations continue to
struggle, its entertainment arm has performed
steadily—notwithstanding a data breach that roiled its Hollywood
studio last year.
Sony's image sensors, used in the cameras in Apple Inc. iPhones
and other smartphones, are fueling growth, while its PlayStation 4
videogame console continues to outsell Microsoft Corp.'s Xbox One
and Nintendo Co.'s Wii U.
Shares in Sony have jumped 40% since the beginning of the
calendar year, far outstripping the benchmark Nikkei average's 8%
rise.
Write to Takashi Mochizuki at takashi.mochizuki@wsj.com and
Mayumi Negishi at mayumi.negishi@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 29, 2015 02:55 ET (06:55 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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