2020
Revenue growth by 9%, up to 8.5 trillion yen, profit - 2 times (up to 1.19 trillion yen)
At the end of fiscal 2020, Sony registered revenue of 8.5 trillion yen (about $84 billion at the weighted average rate for this 12-month period), which is 9% more than a year earlier.
The main catalyst for the financial recovery of the Japanese corporation was the gaming business, the volume of which grew by 34% over the year and reached 2.65 trillion yen. The electronics division registered a 7 percent increase in turnover - up to 2.07 trillion yen. Sony noted a drop in sales of digital cameras, as well as professional audio and video equipment.
Most of the annual revenue (2.96 trillion yen) came from Japan. The second place in terms of turnover of Sony was taken by the United States (2.15 trillion yen).
The revenue of Imaging & Sensing Solutions, which is responsible for the production of image sensors used in smartphones, cameras and other equipment, amounted to 1.01 trillion yen in 2020, which is 7% less than a year ago.
In the direction of financial services, Sony's annual revenues increased by 28%, reaching 1.67 trillion yen, which was largely facilitated by the influx of money from investment projects.
Sony's net profit at the end of the 12-month reporting period, closed at the end of March 2021 of the calendar year, more than doubled relative to the profit a year ago and amounted to 1.19 trillion yen.
Profit in the gaming division increased from 238.4 billion to 342.2 billion yen, and in the Electronics Products & Solutions Segment division it decreased from 139.2 to 134.1 billion yen.
In 2020, Sony sold 5.7 million and 7.8 million game consoles PlayStation 4 and PlayStation 5, respectively. Demand for the first has more than halved largely due to the upcoming release of the second. The annual sale of Sony TVs has practically not changed and amounted to 9.3 million units, but smartphone sales have fallen - from 3.2 million units in 2019 to 2.9 million units a year later.[1]
CMOS Image Sensor Market Share - 48.6%
The market share Sony of image sensors of the type CMOS was 48.6% (Omdia data). More. here
2019: 5% drop in revenue to 8.26 trillion yen due to COVID-19 pandemic
In fiscal 2019, Sony earned 8.26 trillion yen ($76 billion at the weighted average rate for the period under review), which is 5% less than a year earlier. We are talking about a 12-month reporting period, closed March 31, 2020 calendar year.
The annual revenue of the Electronics Products & Solutions division amounted to 1.99 trillion yen, a decrease of 14% compared to a year ago. Sony explained the decline in sales of smartphones and TVs in kind, as well as an unfavorable fluctuation in exchange rates. The company cited production problems in factories, a shortage of components and store closures around the world due to the COVID-19 coronavirus pandemic as the reasons for the fall in the implementation of these devices.
Imaging & Sensing Solutions registered a 22 percent increase in annual turnover, up to 1.07 trillion. The greatest contribution to this rise was made by image sensors used in smartphone cameras and individual cameras. Revenues from the sale of such chips on an annual basis increased from 711.4 to 930.2 billion yen. Sony notes that the production of sensors image remained at the usual level, despite the outbreak of coronavirus. The company also managed to quickly restore the supply channel.
Sony's gaming business has subsided significantly. In fiscal 2019, the revenue of the corresponding division (Game & Network Services) amounted to 1.98 trillion yen, which is 14% less than a year ago. Here, the fallen sales of PlayStation 4 game consoles, as well as games for them, affected. At the same time, the Japanese manufacturer noted an increase in revenue from services and subscriptions to PlayStation Plus.
Sony's net profit in 2019 fell by 36% compared to 2018 and amounted to 582.2 billion yen ($5.36 billion).[2]
2018: 1% revenue growth and tripling mobile business losses
Sony completed the fiscal year 2018 with revenue of 8.67 trillion yen ($78.14 billion - a figure from the company's report) against 8.54 trillion yen a year earlier. Sales increased by 1%, despite the fall in mobile business, which remains unprofitable.
Sony's net profit in fiscal year 2018 almost doubled compared to 2017 and amounted to 916.3 billion yen ($8.26 billion - indicated in the report).
The division responsible for Sony smartphones recorded revenue in the amount of 498 billion yen according to the results of the 12-month period, which ended at the end of March 2019 calendar year. This is 31% less than sales a year ago. In fiscal year 2018, Sony sold 6.5 million smartphones against 13.5 million units a year earlier.
In the telephone division there were losses equal to 97.1 billion yen. This is more than three times the monetary losses of a year ago. Losses are associated with a drop in quantitative sales of smartphones, an increase in restructuring costs and the write-off of components.
The main financial driver of Sony remains the gaming business. The corresponding division in fiscal year 2018 earned 2.31 trillion yen, which is 19% higher than the value of 2017.
Imaging Products & Solutions, which oversees the production of digital cameras, monitors and projectors, showed a 2 percent increase in annual turnover - up to 670.5 billion yen. Sales of Sony digital cameras decreased from 4.4 to 3.6 million units.
In the structure of Home Entertainment & Sound, the main one of which is television sales, revenue in the 2018 reporting year fell by 6% to 1.16 trillion yen. The sale of televisions decreased from 12.4 to 11.3 million units.
The semiconductor business, which is mainly built on image sensors for smartphones and cameras, in 2018 showed a 3% increase in revenue to 879.3 billion yen.[3]
2017: 12.4% revenue growth and mobile business losses
In fiscal year 2017, the end of which fell on March 31, 2018, Sony's revenue reached 8.5 trillion yen (about $77 billion - indicated in the company's report), which is 12.4% more than a year ago. Net profit jumped 570% to 490.8 billion yen ($4.4 billion) and was the highest for the Japanese consumer electronics manufacturer. Only mobile business caused losses.
One of the drivers of Sony's financial growth was the Imaging Products & Solutions division (responsible for the production of digital cameras, monitors and projectors), in which sales increased by 13.2%, amounting to 655.9 billion yen. The sale of digital cameras increased from 4.2 to 4.4 million units.
Sony's semiconductor business increased by 10% to 850 billion yen due to increased sales of image sensors based on which cameras are created in mobile devices.
The telephone division recorded a 5 percent decrease in revenue to 723.7 billion yen. In 2017, the corporation sold 13.5 million smartphones, then a year earlier the tubes sold in the amount of 14.6 million units. In 2018, sales are expected to fall to 10 million units. The decline in the market in Sony was explained by rising prices for key components and the write-off of assets.
The Home Entertainment & Sound division (televisions, audio equipment, home electronics) completed 2017 with an increase in revenue by 18% to 1.2 trillion yen. In the gaming business, turnover increased by 18% and exceeded 1.9 trillion yen.
The most profitable area of Sony's work was financial services, in which the company earned 178.9 billion yen of annual profit. The worst situation is in the mobile division, in which losses are recorded at the level of 27.6 billion yen. Moreover, this unit turned out to be the only unprofitable. The company said it will continue to reduce the telephone business in order to increase profitability.[4]
2016: Halving profits due to problematic sales of cameras and projectors
On April 28, 2017, Sony released its performance indicators for fiscal year 2016. The company's profit has halved, which is partly to blame for problems in the Imaging Products & Solutions division, which is responsible for the production of digital cameras, monitors and projectors.
According to the results of the 12-month period of time, the end of which fell on March 31, 2017, Sony's sales amounted to 7.6 trillion yen ($67.9 billion), a decrease of 6.2% compared to the previous year. The manufacturer explained the decline not profitable for itself currency fluctuation. The corporation's net profit decreased to 73.3 billion yen ($654 million) from 147.8 billion yen in fiscal year 2015.
Judging by the data from the Sony report, the structure of Imaging Products & Solutions is one of the main divisions pulling the company down. During the reporting year, revenue here decreased by 15.3% to 579.6 billion yen ($5.2 billion), which the Japanese giant associated with the negative foreign exchange effect and the consequences of the earthquake in Japan in 2016. Profit in Sony Imaging Products & Solutions decreased by almost a third, amounting to 47.3 billion yen ($422 million).
Sales in the mobile division fell the most - by 32.7% in fiscal 2016 compared to 2015 to 759.1 billion yen ($6.8 billion). In this regression, the vendor blames weak sales of smartphones in Europe, the Middle East and Africa, as well as in low-profit regions.
By reducing costs and focusing on the most profitable devices, Sony's telephone business returned to profit, recording it at 10.2 billion yen ($91 million).
According to the results of the financial year, which began on April 1, 2017, Sony expects the highest profit in almost 20 years - 500 billion yen ($4.5 billion). The company registered a record figure in 1998 (526 billion yen). Sony is counting on a financial upturn thanks to the semiconductor and gaming business.[5]
2015: Return to Profit
On April 28, 2016, Sony announced its performance for fiscal year 2015. The company returned to net profit thanks in part to Imaging Products & Solutions, which specializes in the manufacture of professional displays, monitors, projectors, digital cameras, video conferencing systems, archiving and storage solutions. Operating profit grew by the largest amount in eight years.
According to the results of the 12-month reporting period, which ended on March 31, 2016, Sony's net profit amounted to 147.8 billion yen ($1.38 billion at the exchange rate as of April 28, 2016), while a year earlier there were net losses of 126 billion yen ($1.18 billion). The corporation turned out to be profitable for the first time in three years.
Sony's annual operating profit reached 294.2 billion yen ($2.7 billion), which is more than four times higher than a year ago. This recovery was the biggest since fiscal year 2007. The company's revenue decreased by 1.3% to 8.1 trillion yen ($75.6 billion), which the Japanese giant explained by a drop in smartphone sales. In addition, unfavorable exchange rate fluctuations led to additional Sony expenses of 67.5 billion yen ($630 million).
Sony Imaging Products & Solutions finished the 2015 fiscal year with an operating profit of 72.1 billion yen ($673 million), an increase of 73% compared to the previous year. The manufacturer associated this rise with a shift in the emphasis on the digital camera market towards more expensive production models, as well as measures aimed at reducing costs. At the same time, revenue in the division fell by almost 2% due to the overall fall in the camera market.
Sony is still pulling the phone business down. Its volume in terms of revenue amounted to 1.1 trillion yen ($10.3 billion) in 2015, a decrease of 20% year on year due to the fact that the company made a "strategic decision" to stop chasing large volumes of smartphone sales and focus on more profitable devices, the corporation said.
Although the 2015 fingod turned out to be profitable for Sony, in the last quarter net losses of 88.3 billion yen ($824.5 million) were recorded, which was the result of the expenditure of 59.6 billion yen ($556.5 million) on the impairment of the image sensor business amid a "projected decrease in demand in the future."
At the end of fiscal 2016, analysts polled by Bloomberg expect Sony to have a net profit of 212.2 billion yen ($1.98 billion). The company itself will announce the forecast later - after assessing the effects of the earthquake in Japan, which affected Sony enterprises.[6]
2014: Sixth loss in 7 years
On April 30, 2015, Sony announced the results of its activities for fiscal year 2014. The company's operating profit grew by more than 2.5 times, which was partly helped by the sale of professional audio-visual equipment. However, the Japanese manufacturer retains net losses.
According to the results of the reporting 12-month period, closed on March 31, 2015, Sony's revenue rose by 5.8% year on year, reaching 8.2 trillion yen ($68.5 billion). Operating profit amounted to 68.5 billion yen ($571 million), which is 159% more than a year earlier.
Sony's net loss was sixth in 7 years and exceeded $1 billion
Imaging Products & Solutions (IP&S), which among other products promotes professional displays and monitors, video conferencing systems, archiving and storage solutions, has made a significant contribution to increasing the profitability of the Japanese manufacturer. IP&S showed the best return dynamics: in fiscal 2014, the division's operating profit rose by 107.7% to 54.7 billion yen ($456 million), while other Sony subsidiaries were either able to get rid of losses or increased operating profit by less than 20%.
According to a Sony report, the two-fold increase in IP&S operating profit is largely due to reduced costs, favorable exchange rate fluctuations and the transition to more expensive products. At the same time, the division ended the reporting year with a 2.9 percent drop in revenue (up to 720 billion yen/$ 6 billion) due to a general weakening of demand for digital photo and video cameras.
If we talk about the difference in income and expenses, taking into account taxes and other mandatory payments, in fiscal year 2014, Sony had a net loss of 125.98 billion yen ($1.06 billion), which was practically unchanged over the year. These annual monetary losses were the sixth in seven years. The company promises to return to profit (its forecast is 140 billion yen/$ 1.2 billion) in the fiscal year 2015, which started on April 1, 2015.
Sony's optimistic forecasts can be built by a complete restructuring, in which the computer business was sold, and the television one was separated into a separate company. In fiscal 2015, the cost of transforming the business, according to the manufacturer's plans, will amount to only 45 billion yen ($375.1 million) against 333 billion yen ($2.8 billion) a year earlier.[7]
Notes
- ↑ Sony, FY2020 Consolidated Financial Results
- ↑ FY2019 Consolidated Financial Results Sony
- ↑ Financial Statements and Consolidated Financial Results for the Fiscal Year Ended March 31, 2019 And Outlook for the Fiscal Year Ending March 31, 2020
- ↑ FY2017 Consolidated Financial Results
- ↑ Consolidated Financial Results for the Fiscal Year Ended March 31, 2017
- ↑ Sony Reports Quarterly Loss
- ↑ Sony Expects Profits to Surge This Fiscal Year
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