Sony reported net profit up 33.5 percent year-on-year in its fiscal third quarter to December to JPY 120.1 billion, helped by lower restructuring costs and forex losses. Revenues were up just 0.5 percent to JPY 2.581 trillion (USD 21.5 billion), as continued strength in Playstation sales and film revenues were offset by the weak sales in the smartphone market and lower revenues from components. Operating profit was 11.0 percent higher year-on-year at JPY 202.1 billion.
At the mobile communications division, sales fell 14.7 percent to JPY 384.5 billion, while operating profit more than doubled, to JPY 24.1 billion from JPY 10.8 billion, thanks to cost-cutting efforts. Sony said it made an effort to focus on profitability over volume, and the increased share of higher-end smartphones in sales helped margins. The company sold 7.6 million smartphones in the quarter, down from 11.3 million in the same period a year earlier. For the full fiscal year to March 2016, Sony again trimmed its sales outlook to 25 million smartphones, from an outlook last October of 27 million. Annual revenues from mobile are also expected around JPY 50 billion less than previously forecast, at JPY 1.140 trillion, while Sony maintained its forecast for an annual operating loss of JPY 60 billion at the division.
The company also reiterated its group outlook for annual results. Revenues are estimated at JPY 7.90 trillion and net profit at JPY 140 billion in the full year. Sony cut its outlook for the devices division, as the slower mobile phone market impacts sales of image sensors and batteries. The reduced growth in components will be offset in annual results by a better outlook for the music business. The games division is also on track to sell 17.5 million Playstation consoles over the full year, after strong unit shipments of 8.4 million in the December quarter.
