Sony net profit dives on strong yen

The Myanmar Times - - International Business -

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. –

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