Sony Music posts 23% Q2 profit rise in Yen, boosted by exchange rate

Sony Music has posted a 23.5% rise in Q2 operating profit in Japanese Yen for the three months ended September 30. The increase was primarily due to the favorable impact of the depreciation of the Yen against the US dollar, as well as a general increase in sales of Sony’s recorded music. The firm’s Music group posted a 9.7bn Yen (US $99m) operating profit in the quarter, compared to 7.9bn Yen in Q2 2012.

The operating profit represented a big annual jump in Yen terms, but was flat when converted to US dollars, due to current exchange rates.

Sony Music’s revenue was up 15.9% in Q2 to 115bn Yen ($1.73bn) from 99bn Yen the prior year – but was also essentially flat on a constant currency basis.

For H1 2013 – the six months to September 30 – Sony Music posted a 35.3% rise in operating income in Yen, up to 20.5bn Yen (US $209m) from 15.1bn Yen in H1 2012.

The results include the financial performance of Sony Music Entertainment’s international and Japan-based businesses, as well as its 50% share in Sony/ATV Music Publishing.

Sony put the increase in Q2 recorded music sales down “to continuing growth in digital revenues and the success of a number of recent releases”.

Best-selling titles in the current quarter included Justin Timberlake’s The 20/20 Experience – 2 of 2 , Kana Nishino’s Love Collection ~pink~ and Love Collection ~mint~, ikimono-gakari’s I, and Miley Cyrus’ Bangerz

However, Sony’s good news in its music division arrived against a backdrop of less positive results from its parent company.

Sony Corp issued a full-year profits warning, slashing its FY net income forecast by 40%.

It now expects to make a net profit of 30bn yen ($305) in the financial year to 31 March 2014, down from its earlier projection of 50 bn yen.

In Q2 2013, Sony Corp posted a quarterly net loss of 19.3 billion yen (US $197m). 

Q2 revenues were up by 11% from 1.60 trillion Yen to 1.78 trillion (US $18.1bn) for the three months.

It booked a net loss of US$160 million in H1 2013 – the six months from April to September 30.

Its Pictures division made a bad loss in Q2 of 17.8bn yen, compared to an operating profit of 7.9bn a year earlier.

Meanwhile, Sony’s Game/PlayStation division made an operating loss of 800m yen during the period, compared to an operating profit of 2.3bn yen during the same quarter a last year.

Source: Music Week