Sony reports record operating income in 2018 first-quarter

Times News Service

MUSCAT: Sony reported a record first-quarter operating income ending June 30, 2018, with a 24 per cent year-on-year increase to US$1.78 billion (¥195 billion) compared with US$1.42 billion (¥157.6 billion) in the previous year.

The consolidated sales and operating revenue also increased by five per cent to US$17.90 billion (¥1.95 trillion) compared with the same quarter of the previous fiscal year. The net income attributable to Sony’s stockholders for the quarter was 2.8 times higher than the previous quarter, posting US$2.08 billion (¥226.4 billion).

This growth was spurred by the strong sales of gaming software, which bumped up the forecasts for gaming and chips. The semiconductor division, which includes imaging sensors, posted an operating income of US$266 million (¥29.1 billion), reinforcing sensors as a pillar of growth in the medium and long term, as applications are likely to expand to depth sensing, surveillance, factory automation and automobiles.

Meanwhile, sales of the home entertainment and sound division increased six per cent year-on-year to US$2.49 billion (¥272.1 billion), brought on by an increase in the unit sales of televisions, audio products and headphones.

The imaging products and solutions segment also recorded a six per cent rise year-on-year to US$1.5 billion (¥164.2 billion), while the operating income increased to US$239 million (¥26.1 billion). The rise in sales and operating income was due to an improvement in the product mix of still and video cameras, reflecting a shift to high value-added products, particularly in the interchangeable lens, mirrorless cameras and lenses segments.

“The first quarter of our fiscal year was promising, as we aligned the forecast in the Middle East and Africa region with the new management’s strategy of focusing on stable sources of revenue,” said Fumiatsu Hirai, Managing Director, Sony Middle East and Africa.

“We are reinforcing our sales strategy by promoting our focus product categories from the much-awaited Bravia Master Series of 4K HDR TVs, our industry leading wireless noise cancelling 1000X series headphones, and the highly acclaimed Alpha series of full frame mirrorless cameras,” he added.

The consolidated sales forecast for the upcoming quarter is US$78.82 billion (¥8.600 trillion) as a result of upward revisions, primarily in the game and network services segment.