White House Down shoots down Sony revenue in FQ2 loss
Michelle Clancy | 01-11-2013
Japanese entertainment and CE giant Sony has slashed its full-year guidance after turning in an unexpected loss in its summer quarter. Smartphone sales failed to even out the underperformance of its Hollywood studio in the quarter, and it posted a loss of $115 million for the quarter.
At main issue is the fact that its summer action flick, White House Down, was a box office flop. That's particularly piquant given the success of The Amazing Spider-Man one year earlier. Sony Pictures thus posted an operating loss of $17.8 million, compared to a profit of $7.9 million in the fiscal second quarter of 2012. Overall, it had a 13% decline in revenue from theatrical releases, television licensing and home entertainment.
Based on the results, Sony cut its earnings forecast for the full fiscal year by 40% to $305 million, but noted that its CE division should be profitable for the year.
The company saw operating income of $151 million for its fiscal second quarter (the July-September period), which was down 51.2% compared to the same period last year. Revenue rose 10.6% amid success in smartphones and a weaker yen, but dropped 9% when assuming constant currencies.