Sony has raised its outlook for full-year results after reporting a strong fiscal second quarter to September, driven by positive currency effects, lower restructuring charges and growing sales of its Playstation range and phone camera components. Revenues jumped 22 percent to JPY 2.063 trillion and were up 15 percent on a constant currency basis in Q2.
Operating profit improved to JPY 204.2 billion from JPY 45.7 billion a year ago when the company took a number of writedowns and restructuring charges. The latter fell to JPY 1.6 billion from JPY 31.6 billion a year ago. Net profit surged to JPY 130.9 billion from 4.8 billion in the year-earlier period.
The gaming division posted a near tripling in operating profit, to JPY 54.8 billion from JPY 19.0 billion a year ago, and revenues jumped 35 percent to JPY 433.2 billion. Sony said it benefited from higher sales of both software and hardware, as well as a one-time adjustment of licensing revenue worth JPY 5.1 billion in operating profit. Playstation 4 sales rose to 4.2 million units in the quarter, and the company lifted its full-year forecast to 19 million from an estimate of 18 million in August.
Smartphone sales were flat compared to Q1 at 3.4 million and down from 3.5 million a year ago. Sony trimmed its full-year target for unit shipments to 15.5 million from 16.5 million. Mobile revenues were flat year-on-year at JPY 172 billion, with a 3 percent fall at constant exchange rates. The mobile division moved to an operating loss of JPY 2.5 billion versus a profit of JPY 3.7 billion a year ago, hurt by the weak sales, a poor geographic mix, higher materials costs and the negative forex effects.
The semiconductor division reported the strongest improvement, with an operating profit of JPY 49.4 billion versus a loss of JPY 4.2 billion a year ago and revenues up 18 percent to JPY 224.8 billion. This was due to strong demand for Sony's image sensors for smartphones, as well as extra costs a year ago for earthquake damages. Results were also up at Sony's Pictures, Music and Consumer Electronics divisions, with the latter supported by strong sales of high-end TVs.
The company increased its annual sales target to JPY 8.5 trillion, implying growth of 11.8 percent compared to a forecast in August for 2.4 percent growth. The increase is driven by forex effects, as well as higher sales in music and home electronics, Sony said. Operating profit is now expected to more than double year-on-year to JPY 630 billion, and the net profit forecast increased to JPY 600 billion from JPY 470 billion.
