Brands
FY-2015: Forex, PS4, image sensors boost Sony revenue 5.8%
BENGALURU: Sony Corporation reported a 5.8 per cent growth in sales and operating revenue in FY-2015 (year ended 31 March, 2015, current year) at ?8215.9 billion as compared to the ?7767.5 billion in FY-2014. The company says that the increase was primarily due to the impact of foreign exchange rates, a significant increase in Game & Network Services (G&NS) segment sales reflecting the strong performance of PlayStation 4 (PS4) and a significant increase in Devices segment sales due to the strong performance of image sensors. This increase was partially offset by a significant decrease in sales in All Other, primarily related to Sony’s exit from the PC business. On a constant currency basis, sales were essentially flat year-on-year says the company.
The company’s operating income more than doubled (up 2.6 times) to ?68.5 billion in the current year from ?26.5 billion in the previous year. Sony says that the increase was primarily due to a significant improvement in the operating results of the Devices, G&NS and Home Entertainment & Sound (HE&S) segments. This improvement was partially offset by a significant deterioration in operating results in the Mobile Communications (MC) segment, primarily due to a ?176.0 billion ($1,467 million) impairment of goodwill.
The net loss attributable to Sony’s stockholders in the year at ?126 billion in FY-2015 was slightly lower than the loss of ?128.4 billion in FY-2014.
Business Segments
Mobile Communications (MC)
Sony’s MC segment reported 11 per cent improvement in sales and operating revenues in FY-2015 to ?1323.3 billion as compared to the ?1191.8 billion in FY-2014. The segment reported an operating loss of ?220.4 billion in the current year as compared to an operating profit of ?12.6 billion last year. As mentioned above, the major contributor to loss was the impairment of goodwill of ?176.0 billion.
Game & Network Services (G&NS)
G&NS segment reported 33 per cent growth in sales and operating income to ?1388 billion in FY-2015 as compared to the ?1043.9 billion in FY-2014. Sales and operating income increase was primarily due to an increase in PS4 hardware unit sales, an increase in network services revenue, the impact of foreign exchange rates and an increase in PS4 software sales, partially offset by a decrease in PlayStation3 (PS3) hardware and PS3 software sales.
The segment’s operating profit improved to ?48.1 billion in the current year as compared to a loss of ?18.8 billion in the previous year.
Imaging Products & Solutions (IP&S)
IP&S reported 2.9 per cent drop in sales and operating revenue to ?720 billion in the current year from ?741.2 billion in the previous year primarily due to a significant decrease in unit sales of digital cameras and video cameras reflecting a contraction of these markets, partially offset by the impact of foreign exchange rates and an improvement in the product mix of digital cameras reflecting a shift to high value-added models.
Operating income more than doubled (2.08 times) in FY-2015 to ?54.7 billion as compared to the ?26.2 billion in FY-2014. This increase was mainly due to a reduction in selling, general and administrative expenses, the favourable impact of foreign exchange rates and the above-mentioned improvement in product mix reflecting a shift to high value-added models, partially offset by the above-mentioned decrease in sales of digital cameras and video says Sony.
Home Entertainment & Sound (HE&S)
HE&S revenue in FY-2015 improved 3.3 per cent to ?1207.3 billion from ?1168.6 billion in the previous year due to the impact of foreign exchange rates and an increase in sales of televisions, partially offset by a decrease in audio and video sales. Unit sales of LCD televisions increased mainly due to increases in North America, Japan and Europe, partially offset by decreases in Latin America and China. In Television, sales increased 10.7 per cent year-on-year to ?835.1 billion in FY-2015.
The segment reported operating profit of ?20.1 billion as compared to a loss of ?25.5 in the previous year due to cost reductions and an improvement in product mix reflecting a shift to high value-added models, partially offset by the unfavourable impact of the appreciation of the U.S. dollar, reflecting the high ratio of US dollar-denominated costs.
Devices
Revenue improved 23.9 per cent in FY-2015 to ?957.8billion from ?773 billion in FY-2014 due to increase in sales of image sensors reflecting higher demand for mobile products, the impact of foreign exchange rates, as well as a significant increase in sales of camera modules. Sales to external customers increased 29.8 per cent year-on-year.
The segment reported operating profit of ?93.1 billion in the current year as compared to a loss of ?12.4 billion in FY-2014 due to the impact of the above-mentioned increase in sales of image sensors, the recording of a 32.1 billion yen impairment charge related to long-lived assets in the battery business in the previous fiscal year and the favourable impact of foreign exchange rates.
Pictures
Sony’s Pictures segment report 5.9 per cent rise in FY-2015 in revenue to ?878.7 billion from ?829.6 billion in FY-2014. However in dollar terms, sales from the segment reduced 4 per cent to $7322 million due to a decrease in sales for Motion Pictures and Television Productions. The decrease in Motion Pictures sales was primarily due to lower theatrical revenues reflecting fewer theatrical releases as compared to the previous fiscal year. The decrease in Television Productions sales was due to the previous fiscal year benefitting from the extension and expansion in scope of a licensing agreement for game shows produced by SPE, including Wheel of Fortune. Sales for Media Networks increased year-on-year due to higher digital game revenues and advertising revenues primarily due to acquisitions made in the previous and current fiscal year.
Pictures segment operating income improved 13.4 per cent to ?58.5 billion in FY-2015 from ?51.6 billion in the previous year due to the favourable impact of the depreciation of the yen against the U.S. dollar. On a US dollar basis, operating income was essentially flat year-on-year. The current fiscal year benefitted from the stronger performance of the current fiscal year’s film slate as the previous fiscal year reflected the underperformance of White House Down and After Earth. The current fiscal year also benefitted from lower restructuring charges. Partially offsetting this increase was a gain recognized on the sale of SPE’s music publishing catalogue in the previous fiscal year, the above mentioned decrease in Television Productions sales and higher programming and marketing costs for SPE’s television networks in India.
Music
Sony’s Music segment reported an improvement of 8.2 per cent in revenue in FY-2105 to ?544.6 billion from ?503.3 in the previous year due to depreciation of the yen against the US dollar.
Operating Income in FY-2015 improved 17.4 per cent to ?59 billion form ?50.2 billion in FY-2014.
Financial Services
Financial Services revenue in FY-2015 increased nine per cent to ?1083.6 billion from ?993.8 billion in FY-2014. Operating income from the segment improved 13.5 per cent in the current year to ?193.3 billion from ?170.3 billion in the previous year.
Cyber attack impact on Sony’s FY-2015 figures
Sony’s FY-2015 numbers also included approximately $41 million (?4.9 billion) in costs primarily related to investigation and remediation expenses relating to a cyber attack on SPE’s network and IT infrastructure, which was identified in November 2014 (the cyber attack).
Brands
Raj Cooling Systems launches Agreyas appliances brand
Emraan Hashmi named brand ambassador for consumer appliance push.
MUMBAI: A company known for cooling solutions is now heating up its ambitions in the home appliances market. Raj Cooling Systems Pvt. Ltd. has launched a new consumer appliances brand, Agreyas, marking its entry into India’s rapidly expanding home appliances sector valued at more than Rs 1.5 lakh crore. The move represents a strategic diversification for the company, which has traditionally focused on cooling solutions for residential, commercial and industrial applications. Through Agreyas, the firm plans to tap into growing consumer demand for energy efficient and technology driven household appliances.
To build brand visibility, Agreyas has appointed Emraan Hashmi as its brand ambassador. The campaign has been developed under the banner of Zoommantra Productions, with actor and filmmaker Rohit Roy contributing to the creative direction.
The brand’s initial portfolio will include mid premium air conditioners, washing machines, geysers and other white goods designed to cater to modern Indian households seeking efficient and reliable appliances.
Raj Cooling Systems, founder and chairman Kalpesh Ramoliya said the launch aligns with the company’s broader expansion plans.
“The launch of Agreyas is in line with our vision to build a strong presence in India’s consumer electronics and home appliances market. The brand has been developed as a standalone identity to meet the evolving needs of Indian consumers,” he said.
Hashmi said the collaboration comes at a time when Indian buyers are increasingly looking for innovative and functional home solutions.
“I’m looking forward to working with Agreyas at a time when consumers are seeking more innovative and efficient home products. The brand reflects changing consumer behaviour around functionality, innovation and ease of use,” he said.
Raj Cooling Systems plans to invest around 10 million dollars in developing the brand, with an additional 5 million dollars earmarked over the next three to five years for product development and distribution expansion.
Agreyas will follow a multi channel distribution approach, selling through online platforms, retail outlets and dealer networks aimed at both urban and semi urban markets across India.
With the launch, the company is positioning Agreyas as a standalone consumer facing brand while continuing to leverage its existing manufacturing, engineering and research capabilities built through its core cooling solutions business.
