Sony Music Reports Loss

Sony Corp.'s music division had an operating loss for the quarter ended June 30 of ¥10.3 billion ($86 million), vs. operating income of ¥4.4 billion ($36 million) in the same period last year. At U.S. arm Sony Music Entertainment (SME), the operating loss "increased significantly," mostly due to lower album sales and restructuring costs. Sony Music Entertainment (Japan) (SMEJ) also had an operating loss; it had operating income last year, when it booked a gain on the sale of a studio.

Sony Corp. music revenues fell 5.6% to ¥137.2 billion ($1.15 billion). SME sales rose 4% on a U.S. dollar basis, as demand increased for DVDs it manufactures. SMEJ saw sales fall 29%.

Overall, Sony Corp. had net income of ¥57.2 billion ($481 million), or ¥57.9 (49 cents) per diluted share, driven mostly by electronics. A year ago, it had losses of ¥30.1 billion ($243 million), or ¥32.75 per share (26 cents). Sony had its best-ever fiscal first quarter in terms of sales, which rose 5.4% to ¥1.72 trillion ($14.5 billion).

Sony's American Depositary Shares closed yesterday at $45.49, down $1.61.