Despite an increase in restructuring costs for the PC shutdown and an impairment charge on its LCD TV business, Sony's operating profit nearly doubled year-on-year to JPY 69.8 billion, thanks to a return to profit in the gaming business. Net profit jumped to JPY 26.8 billion from JPY 3.1 billion a year ago, helped by a one-time gain of JPY 4.8 billion on the sale of shares in Square Enix and profits from the licensing venture Intertrust.
The Mobile Communications division recorded sales up 10.1 percent to JPY 314.3 billon, or 2 percent higher excluding currency effects. Smartphone revenues were higher due to the forex effect, but unit sales decline to 9.4 million from 9.6 million a year earlier. The mobile division posted a quarterly operating loss of JPY 2.7 billion, versus a profit of JPY 12.6 billion a year ago when it recorded a one-time patent gain.
Sony lowered its outlook for full-year smartphone sales due to weakness in the mid-range market, saying growth in emerging markets was not as strong as expected. It now expects to sell only 43 million smartphones this year, versus a forecast of 50 million in May. The division's annual revenues are estimated at JPY 1.36 trillion versus an earlier forecast of JPY 1.53 trillion, with the operating result around breakeven. In light of the market developments, the company started a review of its mid-range plan for the mobile business, saying this could lead to a writedown later.
Despite the downgrade in the mobile outlook, Sony maintained its full-year forecast, thanks to stronger-than-expected results from gaming and image sensors. For the year to March 2015, the company expects sales stable at around JPY 7.80 trillion, a strong improvement in operating profit to JPY 140 billion, and a net loss of JPY 50 billion due to the costs of exiting the PC market.
