MUMBAI: Sony Music saw a year-on-year increase in sales in its first financial quarter – although only because of its acquisition of Bertelsmann’s 50 per cent stake in Sony BMG. Sony Corp. posted net income of 23.3 billion yen ($215 million) on sales of 1.6 trillion yen ($14.9 billion) in its fiscal first quarter, which ended June 30, 2009.
The major reported sales of $638m (?385m) for the quarter to June 30, an increase on last year. However, on a pro-forma basis, this represents a 19 per cent fall in sales.
The company says sales at Sony Music Entertainment (which excludes Japan) were up 8 per cent on a U.S. dollar basis. Operating loss declined 40 percent from the prior year due to higher sales resulting from stronger releases and the continued realization of benefits from the company’s worldwide restructuring. Sales at Sony Music Entertainment (Japan) were up 7per cent while its operating income improved significantly, although Sony did not reveal those numbers. It says that revenues were negatively impacted by unfavourable exchange rates, the continued decline in recorded music and the worldwide economic slowdown.
Best-selling albums during the period included Kings Of Leon’s Only By The Night and Bob Dylan’s Together Through Life.
Revenue from Sony / ATV also declined year-on-year, although this was because revenue in Q1 2008 was artificially boosted by a copyright infringement claim. On a US dollar basis, Sony Music lost $2m (?1.2m) for the quarter.