MUMBAI: Sony Corporation’s Music segment- Sony Music Entertainment (SME) reported an increase in sales by 4.4 per cent (2 per cent increase on a constant currency basis) for the first quarter ended 30 June 2014 compared to the same quarter last year. SME sales income was 116.9 billion Yen (1,157 million U.S. dollars) for the first quarter of 2014 and was 112 billion yen during the same period last year.
It is citied that increase in sales on a constant currency basis is primarily due to higher music publishing, visual media and platform sales partially offset by lower recorded music sales. Recorded music witnessed a fall of 1.6 per cent to 79.3 billion Yen. Sales of music publishing increased primarily due to an increase in revenue outside of the U.S which climbed up by 29.5 per cent to 16.2 billion Yen. SME’s Visual Media and Platform reported an increase of 11.8 per cent.
However, the operating income was essentially flat year-on-year at 11.4 billion Yen (113 million US dollars) due to cost reductions in Recorded Music being offset by a decrease in equity in net income from affiliated companies.
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In Q1 2014-15, SME witnessed lower depreciation and amortisation by 3.3 billion Yen. According the financial statement, Michael Jackson’s ‘Xscape’; Pharrell Williams’ ‘GIRL’; and John Legend’s ‘Love In The Future’, were the best selling albums.
It is estimated that sales and operating revenue will be 500 Billion Yen for May and June 2014 and operating income would be 48 billion Yen.
The same quarter of the previous fiscal year included a 10.3 billion Yen gain recognised on the sale of Sony Pictures Entertainment’s music publishing catalogue. The forecasts for the pictures, music and financial services segments remain unchanged from the May forecast.
Overall, Sony Corporation reported a growth of 5.8 per cent in its sales and operating revenue to 1,809.9 billion Yen (USD 17,920 million) for the quarter ended 30 June 2014 (Q1-2015) as compared to last year’s quarter (Q1-2014) 1,711.4 billion Yen.
The Music segment is comprised of the recorded music, music publishing and visual media and platform categories. Recorded Music includes the distribution of physical and digital recorded music and revenue derived from artistes’ live performances; music publishing includes the management and licensing of the words and music of songs; visual media and platform includes various service offerings for music and visual products and the production and distribution of animation titles.
