BENGALURU: Sony Corp (Sony) had an investors’ day on 23 May 2017 pertaining to the results for its financial year ended 31 March 2017 (FY-17). It its investor presentation, the company has forecast 12.7 percent growth in revenue of its Sony Pictures Entertainment (SPE) group to $9,346 million for fiscal 2018 from $8,292 million in FY-17.
Sony’s Pictures segment is comprised of the Motion Pictures, Television Productions, and Media Networks categories.
SPE’s Media Networks growth driven by GSN and India, somewhat offset by TEN Sports, will be among the largest factors that will impact performance positively for fiscal 2018. The company forecasts 28 percent growth in operating income to $359 million in FY-18 from $280 million in fiscal 2017 for SPE. Sony Pictures Network India (SPN India) is a part of SPE.
Sony has planned strategies for growth of its SPE group in fiscal 2018. These include implementing turnaround for its Motion Pictures segment. Sony Corp reported a steep drop in operating income for fiscal 017, which it says was mainly due to the US$962 million (¥112.1 billion yen) impairment charge of goodwill recorded in the Motion Pictures segment.
For SPE’s Television Production segment, Sony plans to maintain and strengthen relationships with top content producers and major networks, while for SPE’s Media Networks segment Sony plans to generate stable profit through recurring revenue business model.
In FY-17, Sales for the SPE decreased 3.7 percent (a 5 percent increase on a U.S. dollar basis) primarily due to the impact of the appreciation of the yen against the U.S. dollar. The increase in sales on a US dollar basis was primarily due to higher sales for Television Productions and Media Networks. Sales for Television Productions increased primarily due to higher subscription video-on-demand (SVOD) licensing revenues. The increase in sales for Media Networks was due to higher advertising and subscription revenues mainly in India, Latin America and the US says the company.
The company has also announced Anthony Vinciquerra as chairman and CEO of SPE effective 1 June 2017.
