MAM

FY-2015: Forex, PS4, image sensors boost Sony revenue 5.8%

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/mam-images/2015/05/20/mam-brands-financial.jpg?itok=PYYTR4Ed

BENGALURU: Sony Corporation reported a 5.8 per cent growth in sales and operating revenue in FY-2015 (year ended 31 March, 2015, current year) at ?8215.9 billion as compared to the ?7767.5 billion in FY-2014. The company says that the increase was primarily due to the impact of foreign exchange rates, a significant increase in Game & Network Services (G&NS) segment sales reflecting the strong performance of PlayStation 4 (PS4) and a significant increase in Devices segment sales due to the strong performance of image sensors. This increase was partially offset by a significant decrease in sales in All Other, primarily related to Sony’s exit from the PC business. On a constant currency basis, sales were essentially flat year-on-year says the company.

The company’s operating income more than doubled (up 2.6 times) to ?68.5 billion in the current year from ?26.5 billion in the previous year. Sony says that the increase was primarily due to a significant improvement in the operating results of the Devices, G&NS and Home Entertainment & Sound (HE&S) segments. This improvement was partially offset by a significant deterioration in operating results in the Mobile Communications (MC) segment, primarily due to a ?176.0 billion ($1,467 million) impairment of goodwill.

The net loss attributable to Sony’s stockholders in the year at ?126 billion in FY-2015 was slightly lower than the loss of ?128.4 billion in FY-2014.

Business Segments

Mobile Communications (MC)

Sony’s MC segment reported 11 per cent improvement in sales and operating revenues in FY-2015 to ?1323.3 billion as compared to the ?1191.8 billion in FY-2014. The segment reported an operating loss of ?220.4 billion in the current year as compared to an operating profit of ?12.6 billion last year. As mentioned above, the major contributor to loss was the impairment of goodwill of ?176.0 billion.

Game & Network Services (G&NS)

G&NS segment reported 33 per cent growth in sales and operating income to ?1388 billion in FY-2015 as compared to the ?1043.9 billion in FY-2014. Sales and operating income increase was primarily due to an increase in PS4 hardware unit sales, an increase in network services revenue, the impact of foreign exchange rates and an increase in PS4 software sales, partially offset by a decrease in PlayStation3 (PS3) hardware and PS3 software sales.

The segment’s operating profit improved to ?48.1 billion in the current year as compared to a loss of ?18.8 billion in the previous year.

Imaging Products & Solutions (IP&S)

IP&S reported 2.9 per cent drop in sales and operating revenue to ?720 billion in the current year from ?741.2 billion in the previous year primarily due to a significant decrease in unit sales of digital cameras and video cameras reflecting a contraction of these markets, partially offset by the impact of foreign exchange rates and an improvement in the product mix of digital cameras reflecting a shift to high value-added models.

Operating income more than doubled (2.08 times) in FY-2015 to ?54.7 billion as compared to the ?26.2 billion in FY-2014. This increase was mainly due to a reduction in selling, general and administrative expenses, the favourable impact of foreign exchange rates and the above-mentioned improvement in product mix reflecting a shift to high value-added models, partially offset by the above-mentioned decrease in sales of digital cameras and video says Sony.

Home Entertainment & Sound (HE&S)

HE&S revenue in FY-2015 improved 3.3 per cent to ?1207.3 billion from ?1168.6 billion in the previous year due to the impact of foreign exchange rates and an increase in sales of televisions, partially offset by a decrease in audio and video sales. Unit sales of LCD televisions increased mainly due to increases in North America, Japan and Europe, partially offset by decreases in Latin America and China. In Television, sales increased 10.7 per cent year-on-year to ?835.1 billion in FY-2015.

The segment reported operating profit of ?20.1 billion as compared to a loss of ?25.5 in the previous year due to cost reductions and an improvement in product mix reflecting a shift to high value-added models, partially offset by the unfavourable impact of the appreciation of the U.S. dollar, reflecting the high ratio of US dollar-denominated costs.

Devices

Revenue improved 23.9 per cent in FY-2015 to ?957.8billion from ?773 billion in FY-2014 due to increase in sales of image sensors reflecting higher demand for mobile products, the impact of foreign exchange rates, as well as a significant increase in sales of camera modules. Sales to external customers increased 29.8 per cent year-on-year.

The segment reported operating profit of ?93.1 billion in the current year as compared to a loss of ?12.4 billion in FY-2014 due to the impact of the above-mentioned increase in sales of image sensors, the recording of a 32.1 billion yen impairment charge related to long-lived assets in the battery business in the previous fiscal year and the favourable impact of foreign exchange rates.

Pictures

Sony’s Pictures segment report 5.9 per cent rise in FY-2015 in revenue to ?878.7 billion from ?829.6 billion in FY-2014. However in dollar terms, sales from the segment reduced 4 per cent to $7322 million due to a decrease in sales for Motion Pictures and Television Productions. The decrease in Motion Pictures sales was primarily due to lower theatrical revenues reflecting fewer theatrical releases as compared to the previous fiscal year. The decrease in Television Productions sales was due to the previous fiscal year benefitting from the extension and expansion in scope of a licensing agreement for game shows produced by SPE, including Wheel of Fortune. Sales for Media Networks increased year-on-year due to higher digital game revenues and advertising revenues primarily due to acquisitions made in the previous and current fiscal year.

Pictures segment operating income improved 13.4 per cent to ?58.5 billion in FY-2015 from ?51.6 billion in the previous year due to the favourable impact of the depreciation of the yen against the U.S. dollar. On a US dollar basis, operating income was essentially flat year-on-year. The current fiscal year benefitted from the stronger performance of the current fiscal year’s film slate as the previous fiscal year reflected the underperformance of White House Down and After Earth. The current fiscal year also benefitted from lower restructuring charges. Partially offsetting this increase was a gain recognized on the sale of SPE’s music publishing catalogue in the previous fiscal year, the above mentioned decrease in Television Productions sales and higher programming and marketing costs for SPE’s television networks in India.

Music

Sony’s Music segment reported an improvement of 8.2 per cent in revenue in FY-2105 to ?544.6 billion from ?503.3 in the previous year due to depreciation of the yen against the US dollar.

Operating Income in FY-2015 improved 17.4 per cent to ?59 billion form ?50.2 billion in FY-2014.

Financial Services

Financial Services revenue in FY-2015 increased nine per cent to ?1083.6 billion from ?993.8 billion in FY-2014. Operating income from the segment improved 13.5 per cent in the current year to ?193.3 billion from ?170.3 billion in the previous year.

Cyber attack impact on Sony’s FY-2015 figures

Sony’s FY-2015 numbers also included approximately $41 million (?4.9 billion) in costs primarily related to investigation and remediation expenses relating to a cyber attack on SPE’s network and IT infrastructure, which was identified in November 2014 (the cyber attack).

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/12/savlon.jpg?itok=394aS9Bm
Savlon shows reality of mother's love

Savlon, a health and hygiene brand from the house of ITC has launched a campaign ‘Bharosa Maa Sa’. It is a heartfelt tribute to the healing touch of mothers highlighting a simple moment of truth that every individual relates to.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/12/M%20K.jpg?itok=lxg-i-zi
Mindshare appoints M K Machaiah as chief innovation officer

MUMBAI: India’s largest full service media agency, Mindshare, a part of GroupM has appointed MK Machaiah, known as Mac, as chief innovation officer for South Asia.

MAM Media and Advertising People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/12/youtube.jpg?itok=j0JuH5zZ
LG astronaut becomes the most watched ad in India this year

MUMBAI: YouTube has released its annual year-end edition of the YouTube Ads Leaderboard 2017 capturing the most celebrated ads that received maximum views, shares, and love from audiences across India. Together, the top 10 ads generated a whopping 200 million views.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/12/ola.jpg?itok=8O9ddgr6
Ola gets Viraj Chouhan to head communications

MUMBAI: Cab hailing service Ola has appointed Viraj Chouhan as its chief communications officer. In his new role, Chouhan would be reporting to co-founder and CEO, Bhavish Aggarwal and will be based in Gurgaon, shuttling between the Millennium City and Bangalore.

MAM Marketing Brands
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/11/Levi.jpg?itok=i_ggieNm
Levi's hands over media duties to OMD

MUMBAI: Following a comprehensive market review, Levi’s has appointed OMD India to handle its media duties from its Bengaluru office.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/11/Dentsu.jpg?itok=SFcfbyL9
Dentsu Webchutney to handle creative for Goomo

MUMBAI: Dentsu Webchutney, the digital agency from Dentsu Aegis network, has been assigned as the lead creative agency for Goomo.com, an omnichannel, travel-tech company that operates across consumer, corporate and B2B segments. The account will be managed by Dentsu Webchutney’s Mumbai office.

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/11/Festival-Bharat_0.jpg?itok=VAxKHszU
Festival of Bharat to cast the spotlight on India

MUMBAI: History repeats itself but this time there’s a twist. A London-based investor and indophile is spellbound by India but he’s got better plans. Cory Bixler has co-founded a festival that celebrates and aims to promote India’s culture to the world - The Festival of Bharat (FoB).

MAM Media and Advertising Event Agencies
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/09/nutri-choice.jpg?itok=kj4BA9Se
Britannia NutriChoice promotes healthy food choices

MUMBAI: Health is tough and requires a lot of sacrifice. This is the perception that deters most people from adopting a healthier lifestyle. In its new TVC campaign, Britannia NutriChoice Digestive puts forth a refreshing new point of view that when you start on your health journey, while the...

MAM Marketing MAM
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/09/Sumanto.jpg?itok=o0U8gnck
Soho Square wins creative mandate for Medlife

MUMBAI: Soho Square Bangalore has won the creative mandate for MedLife, the healthcare app. The agency has been awarded the reins of the account in the aftermath of a competitive multi-agency pitch. Soho Square will now partner with MedLife on a journey to simplify healthcare by making the entire...

MAM Marketing MAM

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories