Sony Corp Forecasts 73% Increase in Profits for FY2017, the Highest Since 2001
Image Sensor Business and Gaming to contribute to strong financial performance
Dubai, United Arab Emirates – 15 May 2017 – Sony Corporation recently announced that it forecasts operating profit of ¥ 500 billion (US$ 4.5 billion) for FY 2017 ending March 31, 2018, an increase of 73.2 per cent compared to FY 2016 ended March 31, 2017, making it the highest profit in two decades.
The strong outlook is predicated on Sony’s continued dominance in the gaming sector combined with a strong recovery from earthquake damages in its image sensor business, and also robust demand from smartphone vendors.
The overall sales and operating revenue for FY 2017 is also set to increase five per cent year-on-year to ¥ eight trillion (US$ 71.43 billion), as a result of the significant improvement expected in the Semiconductors and Pictures segments.
Outlook for business segments ending 31 March 2018
In the Imaging Product & Solutions division, the sales and operating income are both expected to reach ¥ 640 billion (US$ 5.71 billion) and ¥ 60 billion (US$535 million) respectively. This is primarily due to an improvement in the product mix reflecting a shift to high value-added models in Still and Video Cameras.
Sony expects the Game & Network Services to expand to ¥ 1.90trillion (US$ 17 billion) in sales and ¥ 170 billion (US$ 1.51 billion) in operating income in the same period. The significant year-on-year increase is due to an increase in network sales.
Meanwhile, the improvement in product mix reflecting a shift to high value-added models in the Home Entertainment & Sound is forecast to grow sales year-on-year to ¥ 1.12 trillion (US$ 10 billion). The operating income is expected to remain the same at ¥ 58 billion (US$ 518 million) due to an increase in the price of key components, substantially offset by the above-mentioned improvement in product mix.
Sony Middle East & Africa (MEA) business to grow by 20 per cent
The regional operations of Sony in the region aim to increase its regional presence and grow its business by 20 per cent in FY 2017, underpinned by an expected increase of 26 per cent in television sales, 11 per cent in audio product sales, and a 52 per cent sales growth in its interchangeable lens camera business in FY 2017.
“Sony’s growth strategy in the Middle East and Africa region is aligned with our global strategy. We will continue to address consumer requirements with a much focused product portfolio that relies on innovation, a multi-faceted user experience and improved functionality, which will contribute to our top line growth and overall strategic objectives,” said Taro Kimura, Managing Director, Sony MEA.
In FY2016, Sony MEA witnessed massive growth in sales in the television segment by registering 174 per cent increase, whilst gaining a 16 per cent market share in the 55-inch TV size category. The company also experienced strong growth in the 65-inch TV size segment and grew by 112 per cent and hit 18 per cent market share, while the 75-inch TV size segment achieved 252 per cent growth with a market share of 20 per cent.
Meanwhile, in the audio segment, the soundbar category grew by 126 per cent while the high power audio one box series achieved 55 per cent growth. The headphone and earphone business has grown by 38 per cent, reinforcing the company’s positioning in sports, Bluetooth and noise cancelling space. In the digital camera business, Sony’s mid-segment grew from 58 per cent in FY2015 to 65 per cent in FY2016.
Among the new products that Sony MEA will focus in FY2017 are the first BRAVIA OLED TV A1 Series, powered by the newly developed Acoustic Surface™ technology and a streamlined, stylishly minimalistic “One Slate Design Concept”, and the revolutionary α9 digital camera with blackout-free continuous shooting at up to 20fps. Sony MEA is also focusing on the MDR-1000X industry-leading noise-cancelling headphones this year.
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