Sony Profits Come Roaring Back On Solid PlayStation 4 Sales Growth
Sony today reported a 95.7 percent year-on-year increase in sales for its Games & Network Services division. Driving by red hot demand for its PlayStation 4 console, Sony's Games & Network Services arm collected $2.5 billion during the company's fiscal first quarter ended June 30, 2014. After paying the bills, Sony was left with a $43 million profit, compared to a $159 million loss in the same quarter a year ago.
"This increase was primarily due to the contribution from sales of PS4 hardware which was launched in November 2013, as well as a significant increase in network services revenues accompanying the launch of the PS4," Sony said. "Sales to external customers increased 101 percent year-on-year."
Overall, Sony raked in $17.9 billion in revenue during the quarter, propelling the company to a $265 million profit, up from $34 million a year prior. Most analysts were expecting Sony to report a net loss.
In addition to booming console sales, Sony's bottom line was boosted by a pair of box office hits last quarter, including The Amazing Spider-Man 2 (grossed over $700 million globally) and 22 Jump Street (grossed around $280 million to date). These flicks drove Sony's Pictures division to a 22.6 year-on-year increase in sales to $1.9 billion, leading to a profit of $78 million.
Even though Sony came out strong last quarter, it's still expecting to post a net loss of around $486 million for its fiscal year ending March 31, 2015. Investors seem unfazed by the full-year outlook, as Sony's stock is up more than 5 percent early morning trading today.
"This increase was primarily due to the contribution from sales of PS4 hardware which was launched in November 2013, as well as a significant increase in network services revenues accompanying the launch of the PS4," Sony said. "Sales to external customers increased 101 percent year-on-year."
Overall, Sony raked in $17.9 billion in revenue during the quarter, propelling the company to a $265 million profit, up from $34 million a year prior. Most analysts were expecting Sony to report a net loss.
In addition to booming console sales, Sony's bottom line was boosted by a pair of box office hits last quarter, including The Amazing Spider-Man 2 (grossed over $700 million globally) and 22 Jump Street (grossed around $280 million to date). These flicks drove Sony's Pictures division to a 22.6 year-on-year increase in sales to $1.9 billion, leading to a profit of $78 million.
Even though Sony came out strong last quarter, it's still expecting to post a net loss of around $486 million for its fiscal year ending March 31, 2015. Investors seem unfazed by the full-year outlook, as Sony's stock is up more than 5 percent early morning trading today.
