Sony Corporation posts 180.5% growth in operating income in Q1 FY2017

Sony Corporation announced its operating income for the first quarter of 2017, posting a 180.5 per cent year-on-year increase against the same period last year. The operating profit was attributed mainly to the increasing sales of Imaging Products and Solutions (IP&S).

Concluding 30 June 2017, the operating income for the quarter amounted to US$1.407 billion (¥157.6 billion), up 180.5 per cent from US$501.78 million (¥56.2 billion) in Q1 2016. The sales and operating revenue for Q1 reached US$16.59 billion (¥1.9 trillion), a 15.2 per cent increase from US$14.4 billion (¥1.61 trillion) from the same period last year.

This significant increase in the operating income was attributed to the improvements of operating results in the Imaging Products & Solutions (IP&S) segment. The IP&S revenue increased from US$1.09 billion (¥122.2 billion) to US$1.39 billion (¥155.6 billion), while operating income for the division rose 209.1 per cent to US$207 million (¥23.2 billion) in Q1 2017 from US$66.9 million (¥7.5 billion) of Q1 2016.

The Home Entertainment & Sound (HE&S) segment sales increased 9 per cent year-on-year to US$2.29 billion (¥256.9 billion). This increase was primarily due to an improvement in the product mix reflecting a shift to high value-added models, partially offset by a decrease in unit sales, both in televisions. The operating income increased from US$20 million (¥2.3 billion) year-on-year to US$202 million (¥22.6 billion).

“Our growth strategy across the Middle East and Africa region is aligned with our global strategy. We are confident that the launch of our new flagship models and most innovative products – BRAVIA OLED TV A1 and α9 – will contribute to the overall growth. With a more focused product portfolio, we aim to continue to achieve our top-line growth and overall strategic objectives,” said Taro Kimura, Managing Director, Sony MEA.

Meanwhile, Semiconductor sales rose 41.4 per cent year-on-year to US$1.82 billion (¥204.3 billion) for the quarter, which was partly due to an increase in unit sales of image sensors for mobile products. As a result, operating income for the division rose to US$494 million (¥55.4 billion) from the US$388 million (¥43.5 billion) reported for the same quarter in the previous year.

While sales for Sony's Mobile division dropped 2.5 per cent to US$1.61 billion (¥181.2 billion), operating income rose 771.3 per cent to US$32 million (¥3.6 billion), mainly due to reductions in operating costs and R&D expenses. Financial Services revenue rose to US$2.7 billion (¥303.2 billion) while the Music income increased 57.6 per cent year-on-year to US$223 million (¥25 billion). The Games & Network Services income, on the other hand, declined 59.7 per cent year-on-year, mostly due to the absence of a highly profitable first-party software title released in the same quarter of the previous.

For the fiscal year ending March 31, 2018, Sony is expecting US$71.43 billion (¥8.3 trillion) in sales and operating revenue and US$4.5 billion (¥500 billion) in operating income.