24 hours after appointing a new CEO Sony has announced a 17.4% decline in sales and losses of $1.176 Billion for the last quarter ending December 2011.The struggling Japanese Company who admitted yesterday that things look grim said TV sales had plunged 25.3% resulting, in an operating loss of US$1,099 million.
During the quarter, Sony experienced a decline in their TV unit selling prices that exceeded cost and expenses and a decline in its game business which saw sales of their PlayStation 3 contribute to losses, although the company did not announcehow much sales of their Playstation 3 had fallen. Earlier, Sony sold all of its shares held in its S-LCD division to Samsung Electronics.
Sony said the high cost of promoting their content network had also contributed to losses in their consumer business.
Sales at Sony Pictures increased 7.7% year-on-year to US$2,058 million. Theatrical revenues increased due to a greater number of films being released in the current quarter as compared to the same quarter of the previous fiscal year. Despite the strong performance of The Smurfs, home entertainment revenues decreased due to fewer major releases in the current quarter as compared to the same quarter of the previous fiscal year.
Sales at Sony Music decreased 11.7% year-on-year to 1,582 million U.S. dollars. Sony said that the decrease in sales is primarily due to fewer new significant releases in the current quarter compared to the same quarter of the previous fiscal year and the appreciation of the yen. Best selling titles during the quarter included Adele’s 21 and Live at the Royal Albert Hall, Susan Boyle’s Someone to Watch Over Me, music from the hit U.S. television show Glee, and Toshinobu Kubota’s THE BADDEST, Hit Parade.