Sony Q1 Profit Climbs; Backs FY18 Profit View, Lifts Sales Forecast

  • Sony Q1 Profit Climbs; Backs FY18 Profit View, Lifts Sales Forecast

Sony Q1 Profit Climbs; Backs FY18 Profit View, Lifts Sales Forecast

Electronics and entertainment giant Sony said Tuesday its net profit almost quadrupled in the three months to June, backed by brisk sales of smartphone components and cameras and solid revenue from its game business.

Sony Corporation posted a spike in first-quarter operating income, which reached 157.6 billion yen ($1.43 billion), up 180.5 percent.

For the full year ending March, Sony maintained the group's operating profit forecast of 500 billion yen. The Minato, Tokyo-based conglomerate said that its sensor business is the biggest factor that benefitted its recent performance, having recovered from a massive quake that it suffered through in 2016.

Sony's fiscal first quarter profit almost quadrupled from a year earlier, boosted by its lucrative image sensor and other businesses and highlighting a gradual recovery at the Japanese electronics and entertainment company. In light of the current forecast, the company expects to ship 18 million PlayStation 4 systems by the end of its new fiscal year.

Meanwhile, Billboard calculates the overall music operations earnings before interest, taxes depreciation and amortization at $262.6 million (29.17 billion yen) a 48.3 percent increase over the prior year's first quarter EBITDA of $182 million (19.7 billion yen). Sales grew 15% to ¥1.86 trillion (~$16.86 billion).

The latest profit results are great news for a company that was reeling a year ago after powerful earthquakes in Japan caused severe damage to Sony's sensor production facilities.

Worldwide sales of the PlayStation 4, released in 2013, totaled 3.3 million units in the first quarter, down from 3.5 million a year earlier.

Sony, whose sprawling business spans finance, movies, video games and consumer electronics, is seeing better results at its various units, including games, imaging products, semiconductors and home-entertainment systems.

However, Sony cut its sales outlook for the full year for its sensors, issued one quarter ago, by nearly 3% as phone makers in China shift from building handsets that are high end that Sony has typically targeted.

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.

Results were driven from demand from makers of smartphones for its image sensors in high-end handsets that have twin cameras on the rear.

"Shipments of CMOS sensors are strong", he said, referring to components for smartphone cameras.