Sony Q2 Down26 Oct, 2006 By: Jessica Wolf
A poor showing from Sony Corp.'s film division and a battery recall dragged down fiscal Q2 financial results.
The film division saw a 12% increase in box office revenue for the quarter (ended Sept. 30), thanks to films such as Talladega Nights: The Ballad of Ricky Bobby, Monster House and Click. But, Sony Pictures took a $129 million operating loss from theatrical bombs Zoom and All the Kings Men, as well as lower DVD sales for the big hits. The prior year, Sony's film segment saw a $15.3 million loss in the quarter.
Overall, earnings dropped 94.1% to $14 million, due to a $177 million operating loss. Sales for the quarter increased 8.3% year-over-year to $15.71 billion.
The biggest hit came from the battery recall. The company also reported a $369 million loss in the game division, with a 20.5% decrease in sales as gamers anticipate the arrival of PlayStation 3.
Research and development costs for the console added to the loss, the company said.
Meanwhile, electronics revenue was up 12.1%, thanks to sales of the Bravia line of LCD HDTV sets and VAIO notebooks. However, operating income dropped 71.4% to $68 million.