MUMBAI: After years of struggle Japanese consumer electronics and media conglomerate Sony has finally managed to turn things around. For the first time since 2008, it has posted a profit.

For the fiscal ended 31 March 2013, the company made a net profit of $458 million, compared with a year-ago loss of $5.7 billion. Sony?s operating profit was $2.45 billion after an operating loss of $820 million in the previous fiscal year. Revenue rose by 4.7 per cent to $72.3 billion.

Profits came from selling key assets such as office buildings, one of which is its headquarters in New York. It benefited from current weakness in the Japanese currency. So its products are cheaper to buy outside Japan.

On 20 March, 2013, Sony completed the acquisition of an additional 32.39 per cent of the shares of Multi Screen Media (MSM). As a result of this transaction, Sony?s total equity interest in MSM increased to 94.39 per cent. The aggregate cash consideration for the additional shares was $271 million, of which $145 million was paid at the closing of the transaction. An additional $42 million was paid on 15 April, 2013. The remaining $84 million will be paid in two equal annual installments of $42 million on 15 April, 2014 and 15 April, 2015.

Pictures: Sales in the Pictures division increased by 11.4 per cent year-on-year to $7.7 billion. The significant increase in sales was primarily due to the favourable impact of the depreciation of the yen against the U.S. dollar and significantly higher theatrical revenues from the current year?s film slate, partially offset by the sale of a participation interest in ?Spider-Man? merchandising rights in the previous fiscal year.

Films that significantly contributed to the higher theatrical revenues included ?Skyfall? and ?The Amazing Spider-Man?. Television revenues also increased primarily due to higher subscription revenues from SPE?s television networks and higher home entertainment revenues from US made-for-cable television programming.

Operating income increased to $ 509 million. This significant increase was primarily due to the stronger performance of the current year?s film slate and lower theatrical marketing expenses, partially offset by 21.4 billion yen of operating income generated from the above-mentioned sale of an interest in Spider-Man merchandising rights in the previous fiscal year. The performance of the current year?s film slate reflects the strong theatrical performance of the two films mentioned above, partially offset by the underperformance of ?Total Recall?.

The segment results also benefitted from higher home entertainment revenues from U.S. made-for-cable television programming.In terms of outlook for the segment sales are expected to increase significantly due to the depreciation of the yen against the US dollar in the assumed foreign exchange rates for the fiscal year ending 31 March, 2014. On a US dollar basis, sales are expected to be essentially flat year-on-year with continued growth in television revenues offset by lower theatrical and home entertainment revenues compared to the previous fiscal year in which several major releases performed well.

Operating income is expected to be essentially flat year-on-year on both a yen and a US dollar basis as the positive impact of the increased television revenues is offset by lower theatrical and home entertainment revenues and an increase in investment in new television programming

Music: In the music division sales were essentially flat year-on-year at $4.6 billion. This was due to the continued worldwide contraction of the physical music market and the impact of a larger number of successful releases in Japan in the previous fiscal year, offset by the favorable impact of the depreciation of the yen against the US dollar and growth in digital revenue

Although the physical music market is expected to continue its worldwide contraction, sales are expected to increase primarily due to the year-on-year depreciation of the yen in the assumed foreign exchange rates and an increase in digital revenue. Operating income is expected to increase slightly due to the above-mentioned reasons for the increase in sales.

Gaming: In the gaming division sales decreased by 12.2 per cent year-on-year to $7.5 billion. Sales to external customers decreased 22.5% year-on-year. This significant decrease was primarily due to a decrease in unit sales of PlayStation3 hardware and PlayStation Portable hardware and software, as well as PlayStation Vita hardware, partially offset by the favourable impact of foreign exchange rates.

Sales are expected to increase significantly primarily due to the planned introduction of the PlayStation 4 in the fiscal year ending 31 March 31, 2014. Operating income is expected to be essentially flat year-on-year primarily due to an increase in research and development expenses and marketing expenses related to the introduction of the PS4, offset by the impact of the above-mentioned increase in sales.

The Future: For the fiscal year ending 31 March, 2014, the Pictures, Music and Financial Services segments are expected to continue to generate stable profit, and Sony is working toward the important goals of turning Electronics to profit and further strengthening Sony?s financial foundation. In order to achieve a return to profit in Electronics, it is especially important for the mobile businesses, particularly smartphones, to demonstrate a significant improvement in operating results and for the television business to turn a profit.

With regards to smartphones, the Xperia TMZ has been enjoying strong consumer a cceptance since it went on sale in February 2013 due to its various cutting-edge technologies from the Sony group. By further accelerating similar initiatives, Sony aims to expand its sales and improve profitability during the fiscal year ending 31 March, 2014 in the smartphone market, which is continuing to grow. The television business progressed more than expected towards its transformation to a profitable structure, and significantly reduced its losses during the recently concluded fiscal. Sony aims to turn the television business to profit during the fiscal ended 31 March, 2014 by continuing to reduce costs and strengthening product appeal through such means as improving the picture and sound quality of full HD models and adding 4K LCD TVs to the product line-up.

On 12 April, 2012, Sony had announced a series of strategic initiatives to be introduced under the new management team appointed on 1 April, 2012. By implementing a rapid decision-making approach that draws on the strengths of the entire Sony group as One Sony, the company says that it aims to revitalise and grow its electronics businesses to generate new value, while further strengthening the stable business foundations of the entertainment and financial services businesses.