Sony reported a second-quarter operating loss which was a lot narrower than the cocaine nose jobs of Wall Street had predicted. Part of the reason was that the PlayStation 4 games console reduced the impact of its sluggish smartphone division.
Everyone expected a loss after Sony took an impairment charge of $1.58 billion on its mobile division but the fact that it was not grim was being seen as proof that the restructuring announced in May by Chief Financial Officer Kenichiro Yoshida is working.
Sony’s operating loss reached $77 million in July-September, compared with the $1.47 billion estimate of analysts polled by Thomson Reuters.
The company posted a net loss of $1.22 billion for the quarter and held its full-year net loss forecast at $1.07 billion.
Sony upped its operating profit forecast for its gaming division to $300 million for the year after shifting 3.3 million PlayStation 4 consoles in the second quarter, moving it further ahead of rival Xbox One, made by Microsoft.
Weighing on electronics was the mobile division, where Sony lowered its smartphone sales outlook to 41 million handsets from 43 million, compared with 39 million last year.
Yoshida, the CFO, said the company would greatly shrink its smartphone business in China, where it has been squeezed by nimble local rivals like Xiaomi, while the incoming chief of the mobile division, Hiroki Totoki, would focus on improving carrier relationships.
Yoshida said a weaker yen was a negative for Sony as it loses 3 billion yen for every yen the Japanese currency falls against the dollar.