Sony Corp.'s music operations -- which consist of three separate
companies, Sony Music Entertainment, Sony/ATV Music Publishing and
Sony Music Entertainment (Japan) -- experienced a drop in sales and
income as the music category posted 7.3 billion yen ($91.8 million)
in operating incomes on 98.8 billion yen ($1.24 billion) in sales
for the company's fiscal first quarter ended June 30.
That's a 39.6% decline in profit from the 12.1 billion yen ($152.1 million) the company posted in the first quarter of 2011, when sales were 109.6 billion yen ($1.38 billion).
Sony Corp's Losses Grow, Cuts Earnings Forecast
Sony attributed the drop in sales and profit to a slower-than-2011 release schedule in the Japan music operation, and to the over decline in CD sales. It also said that the 2011 income total was inflated due to a favorable U.S. legal settlement concerning copyright infringement.
During the
first quarter, Sony's best-selling titles included One Direction's
"Up All Night-The Live Tour DVD;" Carrie Underwood's "Blown Away;
and Usher's "Looking 4 Myself."
The company also noted that Sony Corp. of America-led consortium had completed a significant acquisition of EMI Music Publishing, with Sony contributing $320 million toward the $2.2 billion acquisition price to garner a nearly 40% share in EMI Music Publishing.
It's Official: Sony-Led Acquisition of EMI Music Publishing Approved by EU
The report also noted that in the fiscal year ended March 31, the music operations generated 430.8 billion yen, or $5.2 billion in sales. Overall in the first quarter, Sony posted a net loss of 24.6 billion yen ($309.3 million) on sales of 1.515 trillion yen ($19 billion).
That's a 39.6% decline in profit from the 12.1 billion yen ($152.1 million) the company posted in the first quarter of 2011, when sales were 109.6 billion yen ($1.38 billion).
Sony Corp's Losses Grow, Cuts Earnings Forecast
Sony attributed the drop in sales and profit to a slower-than-2011 release schedule in the Japan music operation, and to the over decline in CD sales. It also said that the 2011 income total was inflated due to a favorable U.S. legal settlement concerning copyright infringement.
The company also noted that Sony Corp. of America-led consortium had completed a significant acquisition of EMI Music Publishing, with Sony contributing $320 million toward the $2.2 billion acquisition price to garner a nearly 40% share in EMI Music Publishing.
It's Official: Sony-Led Acquisition of EMI Music Publishing Approved by EU
The report also noted that in the fiscal year ended March 31, the music operations generated 430.8 billion yen, or $5.2 billion in sales. Overall in the first quarter, Sony posted a net loss of 24.6 billion yen ($309.3 million) on sales of 1.515 trillion yen ($19 billion).
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