Sony’s financial bloodbath continues with $1.37 billion September quarter loss

Sony’s financial bloodbath continues with $1.37 billion September quarter loss

Sony reported a massive 136 billion yen ($A1.378 billion) loss for the September quarter, led by writedowns in its mobile phone business.

Sony’s mobile phone division reported a 172 billion yen loss, down from a narrow 8.8 billion yen profit last year, attributed to 176.0 billion yen in writedowns. Smartphone shipments fell to 9.9 million units from 10 million a year earlier, despite the global smartphone market growing by 25.2% year-on-year.

Late in the quarter, the company overhauled its Xperia mobile, wearables and tablet product line at the IFA trade show in Berlin. Smartphones were a key part of a strategy unveiled in 2012 called One Sony, following a record annual loss of $US6.4 billion.

The Japanese conglomerate also reported 7.7 billion yen in losses related to the company’s sale of its VAIO PC business, announced as part of a restructure in February, contributing to an 18.2 billion yen loss under other operations.

There was also a 1 billion yen loss for Sony Pictures, down significantly from 16.7 billion yen loss for the same quarter a year earlier, with box office flop White House Down, an increase in theatrical releases and marketing costs blamed for the result.

The losses were offset by Game & Network Services (PlayStation), which reported a 21.8 billion yen profit. It also reported profits of 20.1 billion yet from Imaging Products & Solutions (cameras), 8 billion yen from Home Entertainment & Sound (home stereos and TVs) and 11.8 billion yen from music and 47.7 billion yen from financial services.

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