Sony reported third quarter revenues rose by 11 per cent to 1.78 trillion JPY, but operating profits fell 51 per cent to 14.8 billion JPY, against analyst expectations. Sony also cut their fiscal year profit forecast by 40 per cent, from 50 billion JPY to 30 billion JPY.
Company shares dropped 11 per cent on the weak quarterly results and lowered annual profit forecast.
Sony’s mobile operations posted revenues of 418.6 billion JPY, a 39 per cent year-on-year increase attributed to strong smartphone sales. But the company’s entertainment division recorded an operating loss of 17.8 billion JPY despite increased revenues, and both year-on-year sales and operating profits in the company’s game business fell for the quarter. Sales in the company’s TV division also dropped in the period by 42 per cent to 237 billion JPY.
Sony expects a lift in the next quarter with the upcoming launch of the PlayStation 4 games console and rising smartphone revenues worldwide.
