Sony released its second fiscal quarter report of fiscal year 2014. According to the report, Sony's total revenue was 1901.5 billion yen, up 7.2% year on year, and its operating loss was 85.6 billion yen. Its operating profit in the same period last year was 14.8 billion yen, much better than the analysts' expected loss of 164.3 billion yen. The main reason for Sony's operating loss in this quarter was that the mobile business recorded a goodwill impairment of 176 billion yen.
Sony recorded a net loss of 136 billion yen in the second fiscal quarter, and maintained its full year net loss forecast of 230 billion yen. It also continued to adjust its smartphone sales target from 43 million units to 41 million units, and it initially expected 50 million units this year..
In terms of details, GAME&NETWORK SERVICE, also known as Sony's mobile game and network service business, benefited from the sales of PS4. In this fiscal quarter, it sold 3.3 million units, with a total revenue of 309.5 billion yen, an increase of 83.2% year on year, and its business theory was 21.8 billion yen.
HOME ENTERTAINMENT&SOUND, also known as Sony's home entertainment and AV business, benefited from the obvious improvement of TV sales, especially in Europe, North America and Asia, its total revenue was JPY19.7 billion, up 14.7%, and its operating profit was JPY4.9 billion. Mr. Yoshida, Sony's executive vice president and chief financial officer, said that the TV sales volume was expected to be less than 1 million units in the next fiscal year, mainly because the current sales situation in Central and South America was not so good.
In addition, the revenue of imaging products and solutions business increased by 1.8% year on year to US $1639 million. The sales revenue of parts business increased by 23.1% year on year, reaching $2273 million, and the operating profit increased by 148.7% year on year. Financial business sales revenue increased by 10.6% year on year, and operating profit was $45 million.
MOBILE COMMUNICATIONS, also known as Sony's mobile communication business, is the main reason for Sony's loss this time. Affected by the exchange rate, the total sales increased by 1.2% year-on-year to 308.4 billion yen. However, due to the previous revised financial year plan, the goodwill value of Sony Mobile decreased by 180 billion yen, and Sony Mobile suffered a loss of 172 billion yen.
In addition, Sony Mobile will also conduct personnel transfer. Kunimasa Suzuki, who was the president and CEO of Sony Mobile since April 2012, will be transferred to Sony Entertainment as the executive vice president, and will move to the group's executive level after November 16. Hiroki Totoki, the former senior vice president of Sony's overall planning, will serve as the president and CEO of Sony Mobile.
At the financial quarter briefing, Sony said that it would make adjustments to Sony Mobile, such as reducing investment in the Chinese market, making adjustments to regions and releasing products. The specific plan will be announced in November this year.
Sony Mobile's revenue was $2.829 billion, with a loss of $1.578 billion.
The revenue of the game and network business was $2.839 billion, with a profit of $200 million.
The revenue of imaging products and solutions is 1.639 billion dollars, and the profit is 184 million dollars.
The family entertainment revenue was 2.59 billion dollars, with a profit of 73 million dollars.
The revenue of professional equipment was $2273 million, and the profit was $271 million.
The film division recorded a revenue of $1.671 billion and a loss of $10 million.
Music revenue was 1.071 billion US dollars, with a profit of 108 million US dollars.
The financial sector had a revenue of $2473 million and a profit of $437 million.
The revenue of other departments was $997 million, and the loss was $165 million.
