Financial News

  • 15 May 2014, 6:05

Sony Books $1.3bn Loss Despite Strong Sales

Record Playstation and strong smartphone sales were not enough to prevent Sony recording a $1.26bn loss for its last financial year.

The Japanese electronics firm blamed costs associated with its restructuring for the performance, reforms which included the sale of its Vaio-brand PC division to a Japanese investment firm.

The company saw revenue rise almost 15% in the year to March - helped by a weak yen, sales for its new PlayStation 4 (PS4)video games console and the Xperia smartphone.

Last month, the firm said it had sold seven million PS4 consoles worldwide since its launch in late 2013 - ahead of Nintendo's Wii U and the Xbox One.

But the results statement highlighted a tough year for Sony's movie business.

"Sales for Motion Pictures decreased significantly year-on-year due to lower theatrical and home entertainment revenues as the previous fiscal year benefited from the strong performances of Skyfall, The Amazing Spider-Man and Men in Black 3," Sony said.

The results were released a day after Sony admitted it was not paying executive bonuses for a third consecutive year.

It forecast a reduced loss for the current 2014/15 financial year having previously announced a further 5,000 job losses in its strugglingcomputer and television units.

Sony President Kazuo Hirai's restructuring efforts included the $1bn (600m) sale of the company's New York headquarters.

He has ruled out abandoning the ailing television unit, which he insists remains central to Sony's core business, despite the business suffering from razor-thin margins because of stiff competition from rivals.