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Music Pushes Sony Corp. to Quarterly Loss

Jul 28, 2005  •  Post A Comment

Japanese conglomerate and Sony Pictures Entertainment parent Sony Corp. reported Thursday that it swung to a fiscal first-quarter loss of 8.7 billion Japanese yen ($77.6 million), compared with a year-earlier profit of 25.1 billion yen driven by a sharp decline in the company’s music business and weakness in the SPE unit.

Revenue fell 3 percent to 1.6 trillion yen ($14.3 billion) for the three months ended June 30.

The music business proved to be the main driver behind the declines, with revenue in that business falling more than 35 percent. The company’s core electronics business also posted a small decline in revenue, 1.4 percent, which offset a 64 percent surge in revenue from the company’s white-hot PlayStation Portable gaming device.

At SPE, revenue slipped 2.6 percent to 144.4 billion yen ($1.3 billion), while operating income rose 3.5 percent to 4.2 billion yen ($37.5 million). The revenue decline was attributable to lower theatrical revenue on fewer films during the quarter. However, those numbers were offset by sales of MGM titles and a rise in television advertising revenue on several SPE international channels.