PlayStation rules, mobile drools at Sony for 1Q18 earnings
Revenues for Sony’s Mobile division tanked from the past year, but the rest of the company was able to pull the company to better results overall in the first fiscal quarter of 2018.
The Japanese tech conglomerate reported ¥1.95 trillion ($17.5 billion) in operating revenue, an annual gain of 5 percent, with operating income of ¥195 billion ($1.75 billion), up 24 percent.
The majority of the gains came out of the Game & Network Services portfolio as PlayStation 4 console, peripheral and game sales continue to rocket above forecast ranges. Sales jumped 36 percent to ¥472 billion with a near-fourfold increase in operating income to ¥83.5 billion. Most other divisions experienced some improvement in either revenue or income numbers or both, save for Sony’s downsized semiconductors business.
The only case where both sales and income dropped was in the Mobile Communications division — that’s smartphones. Sales dropped 27 percent to ¥132.5 billion with major drags in Europe and its home market of Japan. Last Q1’s ¥3.6 billion operating income has turned into a ¥10.8 billion loss. Sony expects the business to deteriorate with full-year sales and losses deepening from its last forecast.
Sony Mobile was recently reported to be ending business in the Middle East, Africa and Turkey.