Sony logs biggest FY profit in 8 years on restructuring, games

Japanese electronics maker Sony Corp reported its biggest annual operating profit since fiscal 2007 due to cost cuts in its struggling smartphone business and brisk demand for PlayStation 4 videogames.

hidden April 28, 2016 13:40:04 IST
Sony logs biggest FY profit in 8 years on restructuring, games

Japanese electronics maker Sony Corp reported its biggest annual operating profit since fiscal 2007 due to cost cuts in its struggling smartphone business and brisk demand for PlayStation 4 videogames.

Operating profit more than quadrupled to 294.2 billion yen ($2.70 billion) for the year ended March, roughly in line with the firm's forecast announced earlier this month.

But between the lines, Sony's growth prospects may be called into question as its devices business, including image sensors which have been central to revival in recent years, swung to a loss of 29 billion yen from a profit of 89 billion yen a year prior.

As it had previously flagged, Sony did not issue any earnings guidance for this business year as it continued to assess the impact of earthquakes this month that halted production at its image sensor plant in southern Japan. On Thursday, it said the halt could cause "major losses".

The profit jump indicates that massive restructuring in consumer electronics divisions such as mobile phones and televisions is paying off after years of losses.

Sony has been shifting attention to higher-margin products such as sensors, but a global slowdown since late last year in the market for high-end smartphones - which feature high-spec cameras - has dented sensor sales.

Its major clients include Apple Inc, which on Tuesday reported its first-ever decline in iPhone sales as it struggles with an increasingly saturated market.

Reuters

Updated Date:

also read

HP report: 89 percent users believe PCs offer a better gaming experience than smartphones
News & Analysis

HP report: 89 percent users believe PCs offer a better gaming experience than smartphones

94 percent of participants from Tier II cities said they preferred a PC in the HP India Gaming Landscape Report 2021.

Prince Harry announces return of Invictus Games in Germany
Lifestyle

Prince Harry announces return of Invictus Games in Germany

Harry is bringing the Invictus Games back after he had to cancel the event in 2020 and this year because of the coronavirus pandemic.

Fortnite Cosmic Summer Celebration to kick off today at 6.30 pm IST: All you need to know
News & Analysis

Fortnite Cosmic Summer Celebration to kick off today at 6.30 pm IST: All you need to know

The in-game event will go on for two weeks and will include new quests, challenges and rewards.