Sony just disclosed its financial results for the fiscal quarter between April 1st and June 30th 2014, and there are smiles all around.
During those three months Sony Computer Entertainment sold 3.5 million between PS4, PS3 and some leftover PS2 combined, and 0.75 million between PS Vita and PSP combined, while contributing to generate an operating income of of 43 million dollars within the Games and Network Services segment.
Software sales for all the company’s consoles summed up to 390 million and the division is back to being profitable after the loss posted in the last quarter of fiscal year 2013.
Sales increased 95.7% year-on-year (an 86% increase on a constant currency basis) to 257.5 billion yen (2,550 million U.S. dollars). This increase was primarily due to the contribution from sales of PS4 hardware which was launched in November 2013, as well as a significant increase in network services revenues accompanying the launch of the PS4. Sales to external customers increased 101% year-on-year.
Operating income of 4.3 billion yen (43 million U.S. dollars) was recorded, compared to an operating loss of 16.4 billion yen in the same quarter of the previous fiscal year. This significant improvement was primarily due to the above-mentioned increase in sales, partially offset by a decrease in PlayStation®3 (“PS3”) software sales.
Sony as a whole reported a an opeating revenue of 17,920 million dollars and an operating profit of 691 million dollars. Then net income was 265 million dollars, with the company finally jumping back in the black, posting actual profits. The performance of the PS4 and the Games and Network Services as a whole is marked as the primary cause behind the upturn.
Sales were 1,809.9 billion yen (17,920 million U.S. dollars), an increase of 5.8% compared to the same quarter of the previous fiscal year (“year-on-year”). This increase was primarily due to a significant increase in G&NS News & Information segment sales, reflecting the contribution of the PlayStation 4 (“PS4”) which was launched in November 2013, a significant increase in Pictures segment sales primarily due to higher theatrical revenues in Motion Pictures, as well as the favorable impact of foreign exchange rates. 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 increased 3% year-on-year. For further details about sales on a constant currency basis, see Note on page 9.
Operating income increased 34.3 billion yen year-on-year to 69.8 billion yen (691 million U.S. dollars). This increase was primarily due to a significant improvement in the operating results of the G&NS segment partially offset by a significant deterioration in the operating results of the MC segmen
Below you can see the results forecast for the whole year split by segment for for the whole company, with Sony predicting the Game and Network Services segment to generate 25 billion yen in operating income. Up by five million from the latest forecast.
Sales are expected to be higher than the May forecast primarily due to the strong performance of the PS4. Operating income is expected to be higher than the May forecast primarily due to PS4 hardware cost reductions.
The forecast for actual annual unit sales for home consoles, portable consoles and software actually remains unchanged from the earlier forecast at 17 million, 3.5 million and 390 million respectively.