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Sony Reports Q1 Profit Surge

Jul 28, 2004  •  Post A Comment

Japanese conglomerate Sony on Wednesday beat Wall Street’s and its own projections by reporting a huge surge in fiscal first-quarter profit, even as its core electronics business and movie-and-television businesses recorded declines.

For the three-month period ended June 30, Sony reported a profit of 23.3 billion yen ($205.6 million) up from 1.1 billion yen a year ago, on a 0.5 percent increase in revenue to 1.6 trillion yen ($14.3 billion), driven largely by gains at the company’s cellular joint venture, Sony Ericsson Mobile Communications.

The company’s film and television unit, Sony Pictures Entertainment, booked a 2 percent decline in revenue to 148.2 billion yen ($1.3 billion), while the division recorded an operating profit of 4.1 billion yen ($36.7 million) after posting a loss of 2.4 billion yen a year ago.

Sony blamed the revenue decline on currency fluctuations, noting that box-office and DVD sales were strong. In the television realm, the company pointed out that it booked higher advertising revenue on its series “The King of Queens,” as well as higher international syndication and DVD sales revenue from its television library, which offset lower syndicated revenue from the series “Seinfeld,” which struck a long-term syndication agreement with TBS last year.