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Sony has once again missed its target.

The Japanese electronics and entertainment group cut its annual profit guidance for the second time in three months, weighed by a $1bn writedown on its film business.

For the full year through March, the company said it now anticipated a net profit of ¥26bn ($231m) compared to an earlier forecast of ¥60bn. That came in sharply below analyst forecasts for a profit of ¥84.7bn.

Sony had warned earlier this week that it would book a ¥112.1bn ($996m) writedown on its movie business, blaming a faster-than-expected decline in the DVD and Blu-ray market. The company said the majority of the goodwill impairment charge arose from the acquisition of Columbia Pictures Entertainment in 1989.

Its movie and television studio has had a tough 12 months, with few movie hits to speak of — an attempt to reboot the Ghostbusters franchise and Inferno, a sequel to Dan Brown’s The Da Vinci Code, were notable box office disappointments.

The writedown warning also came just weeks after Sony revealed that Michael Lynton is stepping down as chief executive of Sony Entertainment to become chairman of Snap, the owner of messaging app Snapchat.

For the October to December quarter, Sony saw its net profit decline 84 per cent from a year earlier to ¥19.6 bn while revenue fell 7.1 per cent to ¥2.4tn.

Copyright The Financial Times Limited 2017. All rights reserved.
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