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Sony ended the year with a loss of $ 1 billion and promised to return to profit
Japanese electronics maker Sony ends fiscal 2021-2021 with major loss. However, this year the company promises to return to profit with a focus on game consoles and image sensors.
For the 12-month reporting period, closed on March 31, 2021, Sony’s net loss amounted to 125.98 billion yen ($ 1.06 billion) versus 128.37 billion yen ($ 1.08 billion) a year earlier. Cash losses are largely related to the write-off of 180 billion yen ($ 1.52 billion) due to the depreciation of the assets of the mobile division in the face of heightened competition in the global smartphone market.
Sony’s annual operating income more than 2.5x to 68.55 billion yen ($ 577.3 million). Revenue increased by 5.8% to 8.22 trillion yen ($ 69.2 billion).
According to the results of the current fiscal year, which started on April 1, Sony expects net and operating income of 140 and 320 billion yen (1.18 and 2.69 billion dollars), respectively.
Image sensors and game consoles are key drivers of Sony’s planned financial recovery. According to VGChartz, PlayStation 4 almost doubles Xbox One in terms of sales. As for the photo modules used in smartphones and tablets, Sony recently invested 150 billion yen ($ 1.26 billion) in these products. Most likely, the return on investment will not be long in coming.
Sony hopes to cut losses in its mobile division more than fivefold – from 217.6 billion yen ($ 1.8 billion) last year to 39 billion yen ($ 328 million) in the current fiscal year.