Sony Music operating profit up 32.5% in Q3 FY 2013

Sony’s music business saw operating profit rise 32.5% and revenues increase by 14.4% year-on-year in its 2013 fiscal Q3, ended December 31.The financials provided by Sony Corp for music include the results of Sony Music Entertainment, Sony Music Entertainment Japan and its stake in Sony/ATV Music Publishing.
Operating profit increased to 21.7 billion yen ($207 million), primarily due to the favourable impact of the depreciation of the yen against the US dollar, according to the company.

However, Sony also pointed to equity in the net income of EMI Music Publishing, which made a net loss in the same quarter of the previous fiscal year.

Revenues hit 144.7 billion yen ($1.378 billion) “due to the favourable impact of the depreciation of the yen against the US dollar,” according to the company.

On a constant currency basis, revenues dipped 1%. This was due to a year-on-year decrease in recorded music sales “primarily resulting from the impact of a larger number of successful releases in Japan in the same quarter of the previous fiscal year”.

That was, however, partially offset by continued digital revenue growth and strong performances of a number of recent releases in most regions excluding Japan. Sony highlighted One Direction’s Midnight Memories, Beyoncé’s self-titled iTunes LP, Miley Cyrus’ Bangerz, Celine Dion’s Loved Me Back To Life and Kelly Clarkson’s Wrapped In Red.

For the nine months up to December 31, Sony’s music business posted a 33.8% rise in operating income year-on-year to $402 million, while total sales and operating revenues hit $3.539 billion (up 14.5% year-on-year)

Sony Corp. posted a sales increase of 23.9% in the fiscal quarter year-on-year, falling just short of $23 billion. The company attributed this to the launch of the PlayStation 4 by its games division and an increase in smartphone sales, as well as the favourable impact of foreign exchange rates (sales increased 5% on a constant currency basis).

Source: Music Week