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Sony full year results - $1.25bn loss, PS operating loss $78m, PS sales 14.6m, 17m fc

A

Aquamarine

Member
Melkr_ said:
Why is Playstation posting an operating loss? Wasn't the ps4 profitable since launch?
Click to expand...

Increase in costs related to the launch of the PS4 as well as the recording of a 6.2 billion JPY ($60 million) write-off of certain PC game software titles sold by Sony Online Entertainment LLC, partially offset by an increase in sales.
 
P

ponpo

( ≖‿≖)
Aquamarine said:
Sony last year and current year sector performance comparison:

h4xAdsG.png


The Devices segment includes the Semiconductors and Components categories. Semiconductors includes image sensors; Components
includes batteries, recording media and data recording systems
Click to expand...

Why's this down so significantly?
 
A

Aquamarine

Member
Kysen said:
Can we get a legend on that graph? What is mp&c and he&s?
Click to expand...

Legend already added:

Aquamarine said:
Sony last year and current year sector performance comparison:

h4xAdsG.png


Operating income = core profitability


The MP&C segment includes the Mobile Communications and Personal and Mobile Products categories. Mobile Communications
includes mobile phones; Personal and Mobile Products includes personal computers.

The IP&S segment includes the Digital Imaging Products and Professional Solutions categories. Digital Imaging Products includes
compact digital cameras, video cameras and interchangeable single-lens cameras; Professional Solutions includes broadcast- and
professional-use products.

The HE&S segment includes the Televisions and Audio and Video categories. Televisions includes LCD televisions; Audio and Video
includes home audio, Blu-ray DiscTM players and recorders and memory-based portable audio devices.

The Devices segment includes the Semiconductors and Components categories. Semiconductors includes image sensors; Components
includes batteries, recording media and data recording systems

Starting from the second quarter ended September 30, 2013, the disclosure for sales to external customers for the Pictures segment has been
expanded into the following three categories: Motion Pictures, Television Productions, and Media Networks. Motion Pictures includes the
production, acquisition and distribution of motion pictures; Television Productions includes the production, acquisition and distribution of
television programming; Media Networks includes the operation of television and digital networks.

Starting from the second quarter ended September 30, 2013, the disclosure for sales to external customers for the Music segment has been
expanded into the following three categories: Recorded Music, Music Publishing and Visual Media and Platform. Recorded Music
includes the distribution of physical and digital recorded music and revenue derived from artists’ 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.


The Financial Services segment results include Sony Financial Holdings Inc. (“SFH”) and SFH’s consolidated subsidiaries such as Sony
Life Insurance Co., Ltd. (“Sony Life”), Sony Assurance Inc. and Sony Bank Inc. (“Sony Bank”). The results of Sony Life discussed in the
Financial Services segment differ from the results that SFH and Sony Life disclose separately on a Japanese statutory basis.
Click to expand...
 
O

Occam

Member
Melkr_ said:
Why is Playstation posting an operating loss? Wasn't the ps4 profitable since launch?
Click to expand...

So you think it was constructed, built and marketed by magical elves who work for free and use free components?

Anyway, not to worry, Sony will recoup this investment quickly.
 
V

vinnygambini

Why are strippers at the U.N. bad when they're great at strip clubs???
Guidance for 2015 are as follows:

For the current year through March 2015, the Japanese technology and entertainment giant predicted a net loss of ¥50 billion ($489 million), narrower than a loss of ¥128.37 billion a year earlier. Analysts polled by Thomson Reuters had projected, on average, a net profit of ¥59 billion.
Click to expand...

http://online.wsj.com/news/articles/SB10001424052702303627504579561012603088926?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702303627504579561012603088926.html
 
S

shinra-bansho

Member
SwiftDeath said:
Guessing we can't extrapolate updated PS4 numbers from this :\

PS division losing money? Is that R&D costs or what?
Click to expand...
They may say something in the actual earnings call regarding the former. Or they may not. I blame you, Vita.

Regarding the latter:
Sales increased 38.5% year-on-year (a 16% increase on a constant currency basis) to 979.2 billion yen (9,507 million U.S. dollars). This significant increase was primarily due to the launch of the PS4 as well as the favorable impact of foreign exchange rates. PlayStation® 3 (“PS3”) hardware unit sales decreased, although PS3 software sales increased.

Operating loss of 8.1 billion yen (78 million U.S. dollars) was recorded, compared to operating income of 1.7 billion yen in the previous fiscal year. This year-on-year deterioration was primarily due to an increase in costs related to the launch of the PS4 as well as the recording of a 6.2 billion yen (60 million U.S. dollars) write-off of certain PC game software titles sold by Sony Online Entertainment LLC, partially offset by the above-mentioned increase in sales.
Click to expand...
ponpo said:
Why's this down so significantly?
Click to expand...
This significant deterioration in operating results was primarily due to the recording of a 32.1 billion yen (312 million U.S. dollars) impairment charge related to long-lived assets in the battery business as well as a lower net benefit in the current fiscal year from insurance recoveries related to damages and losses incurred from the Floods.
Click to expand...
Although their revenue is also down so probably part of it as well.
 
L

LookAtMeGo

Member
Well I hope things start looking up in the future. Its a shame to see them in such a rough spot. Hopefully they just dump a ton of money into the Playstation division since its their knight in shinning armor at the moment.
 
T

TheXfactor

Member
Occam said:
So you think it was constructed, built and marketed by magical elves who work for free and use free components?

Anyway, not to worry, Sony will recoup this investment quickly.
Click to expand...
thats quite confident, a lot more confidence than i am having right now, sony seems to be in a bit of trouble
 
S

SwiftDeath

Member
shinra-bansho said:
They may say something in the actual earnings call regarding the former. Or they may not. I blame you, Vita.

Regarding the latter:

Although their revenue is also down so probably part of it as well.
Click to expand...

Curious what titles this refers to?

as well as the recording of a 6.2 billion yen (60 million U.S. dollars) write-off of certain PC game software titles sold by Sony Online Entertainment LLC, partially offset by the above-mentioned increase in sales
Click to expand...
 
RiccochetJ

RiccochetJ

Gold Member
Occam said:
So you think it was constructed, built and marketed by magical elves who work for free and use free components?

Anyway, not to worry, Sony will recoup this investment quickly.
Click to expand...

Have you seen around here what some people think things cost? Or should cost?
 
S

Sotha_Sil

Member
Joe_Incognito said:
Question about R&D costs for Sales Age.

Wouldn't R&D costs for the PS4 have occurred two years ago when the console began development?
Click to expand...

R&D will never end. Guys like Cerny are probably already working on the PS5. Project Morpheus, Playstation Now, teams creating new engines, manufacturing of PS4s, figuring out shipping processes. And who knows what else they're looking into that will never see the light of day.

It's just a part of business.
 
T

Tripon

Member
vinnygambini said:
Guidance for 2015 are as follows:



http://online.wsj.com/news/articles/SB10001424052702303627504579561012603088926?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702303627504579561012603088926.html
Click to expand...

Wait, they're offering a guidance of a half a billion loss? Well, at least they're being realistic.

Sakura said:
Does Sony have a pool of funds like Nintendo that these losses come out of, or is Sony in debt?
Click to expand...

Sony's debt rating is junk status at the moment.
 
S

StreetsAhead

Member
This year, they initially predicted profit and ended up with a $1.25 billion loss.

Hopefully, the forecasts are more accurate this year.
 
V

vinnygambini

Why are strippers at the U.N. bad when they're great at strip clubs???
Tripon said:
Wait, they're offering a guidance of a half a billion loss? Well, at least they're being realistic.
Click to expand...

Alot of writedowns and restructuring though.

Operating income are projected to be positive.

Looking forward to their earnings call.
 
Z

zomgbbqftw

Banned
On a positive note, Sony as a whole was cash positive for the first time in three years, they ended the year with more money in the bank than when they started. I figured this was via the issuance of debt, but alas it is not and actually from their operations. Newly added debt comes to about 130bn yen, cash added comes to around 175bn yen. While there are translation additions because of weak yen, one would expect that in a year where they lost 125bn yen they would drain their cash reserves to some degree. If one were to include their banking division they are in an even stronger position.

It means that the losses are largely on paper, the core business seems to be generating cash, though I will have to give it a proper read before I can say that conclusively.
 
J

jryi

Senior Analyst, Fanboy Drivel Research Partners LLC
Joe_Incognito said:
Wouldn't R&D costs for the PS4 have occurred two years ago when the console began development?
Click to expand...

In terms of cash-flow, Sony has been paying for it since 2008. In terms of profit/loss, PS4 R&D may appear in the statement until 2018 (or longer). Depends on how they handle the write-offs or depreciations.
 
H

hodayathink

Member
zomgbbqftw said:
On a positive note, Sony as a whole was cash positive for the first time in three years, they ended the year with more money in the bank than when they started. I figured this was via the issuance of debt, but alas it is not and actually from their operations. Newly added debt comes to about 130bn yen, cash added comes to around 175bn yen. While there are translation additions because of weak yen, one would expect that in a year where they lost 125bn yen they would drain their cash reserves to some degree. If one were to include their banking division they are in an even stronger position.

It means that the losses are largely on paper, the core business seems to be generating cash, though I will have to give it a proper read before I can say that conclusively.
Click to expand...

Well, that sounds...not bad, at least. Or at the very least, it makes it sound like they have a couple years before their non-profitable divisions (TV) drag them down to the point of having to sell off another part of the business.
 
V

vinnygambini

Why are strippers at the U.N. bad when they're great at strip clubs???
zomgbbqftw said:
On a positive note, Sony as a whole was cash positive for the first time in three years, they ended the year with more money in the bank than when they started. I figured this was via the issuance of debt, but alas it is not and actually from their operations. Newly added debt comes to about 130bn yen, cash added comes to around 175bn yen. While there are translation additions because of weak yen, one would expect that in a year where they lost 125bn yen they would drain their cash reserves to some degree. If one were to include their banking division they are in an even stronger position.

It means that the losses are largely on paper, the core business seems to be generating cash, though I will have to give it a proper read before I can say that conclusively.
Click to expand...

I got that as well from the report; however, what of the decrease of Buildings & Machinery Equipment (page 15) - 336bn yen?

Were they sold, written off?

Would PC Division be included Machinery Equipment?
 
cebri.one

cebri.one

Member
zomgbbqftw said:
On a positive note, Sony as a whole was cash positive for the first time in three years, they ended the year with more money in the bank than when they started. I figured this was via the issuance of debt, but alas it is not and actually from their operations. Newly added debt comes to about 130bn yen, cash added comes to around 175bn yen. While there are translation additions because of weak yen, one would expect that in a year where they lost 125bn yen they would drain their cash reserves to some degree. If one were to include their banking division they are in an even stronger position.

It means that the losses are largely on paper, the core business seems to be generating cash, though I will have to give it a proper read before I can say that conclusively.
Click to expand...

Isn't this due primarily to the insurance division?
 
J

Jarod McChicken

Member
The positive note here is the software : 374 millions ? Damn, if I have counted correctly, Nintendo sold around 122 millions games on DS+3DS+Wii+Wii U for the same fiscal year. Too bad Microsoft doesn't reveal their numbers for software.
 
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