Sony Pictures profits soar
Net profits up 105% to $540 million
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Net profits at the conglom soared 105% to ¥66.5 billion ($540 million) between in the quarter ended June 30 on sales up 13% at $16 billion.
Success of “Spider-Man 3” plus growing ad sales at international TV channels lifted the motion picture division’s revenue by 13% to $1.93 billion. A weaker yen also flattered results; sales were up 7% in constant dollar terms.
Division swung to a profit of $26 million from red ink of $8.7 million a year earlier. Company noted a decrease in marketing costs for upcoming summer re-leases.
The motion picture division benefited from strong homevid sales from “Casino Royale” and “Stomp the Yard,” which both saw theatrical release in the previ-ous financial year, though perfs of third-party titles acquired for video were down.
Electronics sales were lifted by 12% (4% in constant currency terms) as the Cybershot camera, Bravia flatscreen TVs and Handycam video cameras did well. Currency appreciation and semi-conductor margins lifted the electronics division’s net profits by 77%.
Games had a mixed influence on the group results. Sales were up 60% vs. a year earlier, reflecting the contribution of the PlayStation3. But losses increased as Sony was forced to sell consoles at a loss at certain strategic locations. Games recorded an operating loss of $237 million.
Results at Sony BMG Music, which are not shown as part of the conglom’s figures, revealed a turnaround as digital music sales improved and overhead costs were cut. Overall sales were essentially unchanged at $875 million, but company swung to an operating profit of $21 million from an operating loss of $81 million.
Bestsellers were Avril Lavigne’s “The Best Damn Thing,” Kelly Clarkson’s “My December” and R. Kelly’s “Double Up.”
