Sony Corporation announced today its financial results for the fiscal year 2014, together with those for the fourth quarter of the same fiscal year.
The company lost 126 billion yen as a whole, but the Game and Network Services division (which includes PlayStation) brought in a positive result by 48.1 billion yen.
We also learn that Sony sold 14.8 million PS4 units during the fiscal year, included in 17.9 million home consoles. 3.3 million portable consoles were also sold.
Software sales reached 460 billion yen, while network revenue was 351 billion yen. Both figures are considerably higher than their equivalents in fiscal year 2013.
The Game and Network Services division was noted between the areas of the business that contributed to a significant increase of sales, revenue and income compared to the last fiscal year.
Sales and operating revenue (“Sales”) were 8,215.9 billion yen (68,466 million U.S. dollars), an increase of 5.8% compared to the previous fiscal year (“year-on-year”). This 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.
Operating income increased 42.1 billion yen year-on-year to 68.5 billion yen (571 million U.S. dollars). This significant 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 yen (1,467 million U.S. dollars) impairment of goodwill.
Operating income for the current fiscal year included a gain of 14.8 billion yen (123 million U.S. dollars) recognized on the sale of certain buildings and premises at Gotenyama Technology Center in Japan, recorded in Corporate and elimination and an 11.2 billion yen (93 million U.S dollars) write-down of PlayStation®Vita (“PS Vita”) and PlayStation TV (“PS TV”) components in the G&NS segment. Operating income in the previous fiscal year included a 32.1 billion yen impairment charge related to long-lived assets in the battery business in the Devices segment, a 25.6 billion yen impairment charge related to long-lived assets in the disc manufacturing business outside of Japan and the U.S. and goodwill across the entire disc manufacturing business, a 12.8 billion yen impairment charge related to long-lived assets in the PC business and a gain of 12.8 billion yen from the sale of certain shares of M3, Inc., all of which were recorded in All Other.
During the current fiscal year, restructuring charges, net, increased 17.4 billion yen year-on-year to 98.0 billion yen (817 million U.S. dollars). PC exit costs decreased 18.7 billion yen year-on-year to 39.6 billion yen (330 million U.S. dollars) which included 19.6 billion yen (164 million U.S. dollars) of restructuring charges. For further details about PC exit costs
Here’s the statement specific to the Games and Network Services segment:
Sales increased 33.0% year-on-year (a 25% increase on a constant currency basis) to 1,388.0 billion yen (11,567 million U.S. dollars). This significant increase was primarily due to an increase in PS4 hardware unit sales, a significant increase in network services revenue, the impact of foreign exchange rates and an increase in PS4 software sales, partially offset by a decrease in PlayStation®3 (“PS3”) hardware and PS3 software sales.
Operating income of 48.1 billion yen (401 million U.S. dollars) was recorded, compared to an operating loss of 18.8 billion yen in the previous fiscal year. This significant improvement was primarily due to the impact of the above-mentioned increase in sales, partially offset by the impact of the decrease in PS3 software sales, the unfavorable impact of the appreciation of the U.S. dollar reflecting the high ratio of U.S. dollar-denominated costs, as well as the recording of an 11.2 billion yen (93 million U.S dollars) write-down of PS Vita and PS TV components in the current fiscal year. In the previous fiscal year, a 6.2 billion yen write-off of certain PC software titles was recorded.
Below you can see all the relevant slides of the presentation: