Sony has cut its annual revenue forecast that was set only three months ago after lowering its sales outlook for the PlayStation 4 gaming console, televisions and smartphones.
The lower guidance on Tuesday came after the Japanese entertainment and technology group reported a 1.9 per cent year on year drop in revenue to ¥1.9tn ($17.5bn) during the fiscal first quarter ending in June 2019. Quarterly net profit fell 33 per cent to ¥152bn
It was the first time Sony reported results after US investor Daniel Loeb launched his second activist campaign against the Japanese group last month, calling on the firm to spin off its “crown jewel” image sensor business to focus on being a global entertainment powerhouse.
In the latest campaign, Mr Loeb has argued that Sony’s shares remain heavily undervalued despite its recent turnround due to the complexity of its portfolio including electronics, image sensors used in Apple’s iPhones, games, films, music and financial services.
For the fiscal year through March 2020, Sony said it now expects revenue of ¥8.6tn compared to ¥8.8tn it projected in April after sales of TVs, smartphones and digital cameras fell during the first quarter. It left its profit outlook for the year unchanged.
Shares in Sony fell 0.1 per cent ahead of the earnings release.
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