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Sony doing very well. No, not really
By CMU Editorial | Published on Friday 30 January 2009
Not great financial results from Sony Music for the last quarter of 2008, though I think we knew that was coming didn’t we?
The major record company, now wholly owned, of course, by Sony Corp since they bought out BMG, generated $1.16 billion in the quarter, 22% down on the same quarter in 2007. The decline, of course, was mainly because of the latest slump in physical CD sales and the failure of new digital revenues to fully compensate for that slump.
Operating income was 10% up on paper, though that, for reasons I don’t understand, is because of the effect of the major becoming a wholly owned subsidiary of Sony Corp, and in fact operating income was also down.
But compared with other parts of the Sony Corporation the music company wasn’t doing so bad. As previously reported, it’s been known for a while Sony’s electronics business is suffering deeply because of the world recession and its impact on the sales of big tellys and flash cameras.
Confirming an operating loss for the third quarter, Sony bosses also confirmed reports the group is likely to make an annual loss for the first time in fourteen years this year.
