Sony net profit dives on strong yen
SONY’S fiscal first half net profit dived as it was hit by a sharp rally in the yen and losses linked to the sale of its battery business.
The electronics giant, which has been shedding assets as part of a broad restructuring, reported a 26 billion yen (US$248 million) net profit in the six months through September, down nearly 78 percent.
Revenue during the period fell more than 10pc to 3.3 trillion yen “primarily due to the impact of foreign exchange rates”, Sony said.
The company said sales in its mobile communications business slumped, while profitability in Sony’s memory chip and components businesses also suffered.
That partly offset strong demand for games on its hugely popular PlayStation 4 game console.
Last month, Sony launched its new virtual reality headset, the PlayStation virtual reality (PSVR), in Japan and North America, joining Facebook, Samsung and Google in a market that analysts say could boost the global gaming sector.
PlayStation VR headsets work with PS4 consoles, more than 40 million of which have been sold globally.
The first-half results came a day after Sony warned that it now expected a net profit of 60 billion yen in the year through March 2017, down by a quarter from an earlier forecast.
Japanese firms have benefited from a weak currency in recent years, which allows them to make their products cheaper overseas.
But the yen, which is seen as a safe bet, shot up since the start of the year as world markets were lashed by wild volatility and as uncertainty over Britain’s decision to leave the EU stoked demand for less risky investments. –