Sony reported revenues for its fiscal first quarter to June down 0.1 percent from a year earlier to JPY 1.808 trillion. On a constant currency basis, revenues fell 7 percent, due to lower sales of smartphones and TVs, offset by growth in its cameras, gaming and components. Operating profit jumped 39 percent to JPY 96.9 billion, and net profit more than tripled, to JPY 82.4 billion from JPY 26.8 billion a year ago. Profits were helped by a number of one-time gains, including on the acquisition of the music group The Orchard and a logistics joint venture.
At the mobile business, revenues fell 16.3 percent to JPY 280.5 billion, and the operating loss swelled to JPY 22.9 billion from JPY 1.9 billion a year ago. Sony sold 7.2 million smartphones in the quarter, down from 9.4 million a year earlier and 7.9 million in the previous quarter. Sony attributed the fall to a strategic decision to focus on profitability over volume. The drop in sales is expected to continue, with the annual forecast cut to 27 million smartphones sold from an estimate in April of 30 million. The revenue forecast for mobile was cut to JPY 1.190 billion, and the operating loss in 2015 is now expected to be bigger, at around JPY 60 billion. Sony said higher average selling prices and cos reductions should offset the lower smartphones volume, but profits will still suffer from negative forex effects.
The downgrade at mobile was offset by an upgrade in the outlook for the gaming and camera divisions, allowing Sony to maintain its group outlook for slightly lower revenues and a strong improvement in operating profit over the fiscal year. Annual revenues are expected to reach JPY 7.9 trillion and operating profit is estimated at JPY 320 billion, versus JPY 68.5 billion a year ago.
