Sony Back In The black As Electronics Division Turns A Profit.
But videogames sector reports major loss as PS3 costs mount Japanese electronics and entertainment giant Sony has announced a 32.3 billion Yen (219 million Euro) profit for the quarter ended June 30th, thanks to a resurgence in profitability at its consumer electronics division. The firm, in the same period last year recorded a 7.3 billion Yen (50 million Euro) loss, also saw revenues in the quarter leap by 11 per cent year on year to 1.74 trillion Yen (11.8 billion Euro) as sales surged in both the electronics and the Sony Pictures movie divisions. However, the videogames division of the firm recorded an operating loss for the quarter as revenues plummeted by some 30 per cent and the costs of developing the PlayStation 3 continued to mount. Sales of the PS2 hardware and software were down for the quarter - as, disappointingly, were sales of the PSP. The results have spurred speculation that Sony may be about to turn its fortunes around after several years of weak financial results and painful restructuring efforts. The firm's British chief executive Howard Stringer - who became the firm's first non-Japanese CEO when he was appointed a year ago - has continued the firm's restructuring efforts, and now appears to be reaping the rewards. As well as announcing its first quarter results, Sony also took the opportunity to update its forecasts for the full year - maintaining its profit target of 130 billion Yen (881 million Euro), but raising its revenue target marginally from 8.20 trillion Yen (55.6 billion Euro) to 8.23 trillion Yen (55.8 billion Euro).