Japanese electronics giant Sony said that their nine-month net profit jumped to 63.2 percent on-year, and this was led by their games and music divisions, whereas tax benefits allowed the company to raise its annual forecast.
The company told that their April-December net profit had reached JPY 828.4 billion ($7.6 billion), but operating profit rose by 13.9 percent up to JPY 811.5 billion. But the revenue reduced by 0.8 percent to JPY 6.54 trillion.
The company said that the expected sales would fall in a range of fields, and told that many of their key segments would meet forecasts and this included the games, music, movie, television and audio operations.
Before the announcement, analysts predicted that the company would continue to see improvement in their revenue after years of painful losses.
Hideki Yasuda, an analyst at Ace Research Institute in Tokyo, told AFP thus-“Sony has remained on a recovery track. Their game sector has continued to grow to their recovery even though the sales of PS4 consoles have gradually slowed down. Their movie segment has also brought in a profit. Their recent box-office movies have been generating profit with the help of sales in DVD and Blu-ray discs and profits from their television license fees. A potential risk is the US-China trade dispute on the global economy, but the impact should be limited. ”
In the three months upto December, which included all-important holiday shopping season, Sony said that they have continued to witness robust game software sales, but the sales of PS4 consoles has slowed down.
EMI Music Publishing, which is a Sony subsidiary, has also contributed to profits, and the movie “Venom” has added to the group’s sales.
Sony has continued to struggle with their smartphone business, and some analysts also suggested that the firm should stop this segment in the future, instead of continuing to go with losses.
Imanaka said- “Its mobile phone business has continued to suffer from losses. Sony should consider taking drastic action, and this includes their withdrawal from smartphone businesses in the near future.”
The trade war going on between the United States and China has posed as a risk to the conglomerate, but the degree of possible damage from the friction has remained uncertain.