Sony more than doubled its net profit in the fiscal first quarter to June, helped by the sale of its shares Spotify and a strong performance in Playstation sales. Net profit rose to JPY 174.8 billion, including a JPY 112.8 billion net gain from the Spotify sale, from JPY 62.70 billion in the year-earlier period. Net sales rose 5 percent to JPY 1.954 trillion, and adjusted operating profit improved 61 percent to JPY 195 billion.
The strong results led to an increase in the company's full-year forecast. It now expects higher revenues of JPY 8.6 trillion versus 8.54 trillion a year ago and guidance in April of JPY 8.3 trillion. The net profit forecast increases to JPY 500 billion from JPY 491 billion a year ago and JPY 480 billion in the earlier outlook. Sony plans an interim dividend of JPY 15 per share.
Sony improved the full-year outlook for most of its divisions, and especially gaming, while only mobile communications suffered a further cut in forecasts. In the first quarter, the gaming division posted sales up 36 percent to JPY 472 billion, and operating profit jumped to JPY 83.5 billion from JPY 17.7 billion, driven by strong sales of Playstation software and network sales. Annual results are now expected to reach JPY 2.135 trillion in sales and JPY 250 billion in profit.
In the smartphone segment, Sony reported a 27 percent fall in quarterly revenues to JPY 132.5 billion, as sales dropped in both Europe and Japan. The mobile division moved to an operating loss of JPY 10.8 billion from a profit of JPY 3.6 billion a year ago. After selling 2 million smartphones in Q1, Sony cut its full-year forecast further, to 9 million units from an outlook of 10 million in April. The division is expected to report an annual loss around JPY 30 billion, worse than the 27.6 billion the previous year, and twice the loss forecast by Sony in April.
Sony increased its forecast for the semiconductor division slightly, to reflect positive forex effects. The division's revenues were essentially flat in the first quarter at JPY 202 billion, as growth in the smartphone sensors market was offset by a downsizing of the camera modules business. Operating profit nearly halved to JPY 29.1 billion, due to one-time insurance and divestment gains a year ago, but is expected to grow to JPY 120 billion over the full year to March 2019.
