Sony Pictures Posts Decline in Revenue

Apr 27, 2005  •  Post A Comment

Sony Pictures Entertainment on Tuesday posted a 3 percent decline in fiscal year revenue to 733.7 billion yen ($6.9 billion), while operating income surged 81 percent to 63.9 billion yen ($602.6 million).

The results came as SPE reported higher DVD and international television syndication sales, which offset the impact of fewer film releases and a drop in domestic television syndication deals during the 12-month period that ended March 31. The company said that SPE’s revenue would have been higher, but the falling U.S. dollar resulted in a decline when converted to Japanese yen.

SPE is part of a consortium of private-equity firms that earlier this month purchased Metro-Goldwyn-Mayer for around $5 billion. MGM will continue to operate as a private company, and Sony, which invested $257 million for a 20 percent stake in MGM, will record 45 percent of MGM’s net income on its books.

SPE’s results helped parent company Sony report an 85 percent rise in net income to 163.8 billion yen ($1.5 billion), while revenue fell 4.5 percent to 7.2 trillion yen ($67.9 billion), due to weakness at the company’s electronics and gaming operations.