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Sony Pictures Clocks Huge Profits For Q2 At $366 Million

Sony Pictures Clocks Huge Profits For Q2 At $366 Million
Compared to mere $3 million in profits for the first quarter, Sony Pictures recorded a huge jump in profits amounting to $366 million for the second quarter. In the same quarter a year ago, the company had posted a profit of $211 million. The second quarter profits of the company was driven by hits such as “Spider-Man: Far From Home” and “Once Upon a Time in Hollywood,” including operations in both film and television.
Sony Pictures is a part of the Japanese electronics and entertainment giant Sony and the above figures were disclosed in the financial results of Sony for the July-to-September period or the second quarter of its financial year.
For the Sony group, there was a 3 per cent drop in revenues in local currency terms at JPY2.22 trillion ($20.6 billion) but it clocked up a profit of JPY188 billion (or $1.74 billion at current exchange rates) which was a jump of 9 per cent year on year. The company also beat analysts’ expectations for earnings per share for the quarter which was at JPY148 against expectations of JPY122 per share.
Strong gains were also made by the music division of Sony. There was a 9 per cent growth in revenues for the unit at JPY219 billion ($2.03 billion) irrespective of currency headwinds. The unit also reported a jump in operating income from JPY31.5 billion ($291 million) to JPY37.5 billion ($375 million).
However, the sale revenues dipped for the games and network services of Sony with a 17 per cent drop in revenue from JPY550 billion to JPY454 billion ($4.20 billion) and a slide of operating income to JPY65.4 billion ($605 million) from JPY95 billion a quarter earlier.
“Spider-Man: Far From Home” had gross box office of $1.13 billion worldwide as shown by supplementary data to Sony’s regulatory filing. “The Angry Birds Movie 2” took in $125 million and Quentin Tarantino’s “Once Upon a Time in Hollywood” grossed $356 million. Revenues from four releases, including “Hotel Transylvania 3” and “The Equalizer 2,” added up to only $828 million in the same quarter last year.
Sony changed its forecast for the entire year for all three content divisions. While the company increased its forecast for its pictures and music business, it brought down the estimates for games business unit.
Activist investor Daniel Loeb and his Third Point Fund gave a proposal notice to Sony in July asking for a corporate breakup. The investor has a $1.5 billion stake in Sony. According to the investors, Sony is among the most undervalued large-cap stocks in the world.
The break up proposals were rebuffed by Sony during its July financial report but had said that it would continue to seek out possibility of rethink for its business structure.
“We have received proposals about our business portfolio. Such proposals are examined carefully, in depth and seriously. We are currently examining them in depth,” senior executive VP and Sony CFO Hiroki Totoki said on a conference call in July. He also described Sony’s image sensors business as “a pillar of the group.”

Christopher J. Mitchell

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