Sony Q1 profit tumbles as movie business disappoints

investing.com:

By Sam Nussey

TOKYO (Reuters) -Japan's Sony (NYSE:SONY) on Wednesday said first-quarter profit tumbled due to weaker performances from its movies and financial businesses.

In April-June, operating profit slid 31% to 253 billion yen ($1.8 billion), in line with estimates.

Profit at its movies division plunged by two-thirds due to lower sales for television content as well as higher marketing costs after the company released more films in theatres.

Once a consumer electronics giant, the conglomerate has transformed itself to focus more on entertainment, developing movies, music and games. It is also a leading maker of image sensors.

In May, Sony said it is examining a partial spin-off of its financial unit, which includes life insurance and banking, as it looks to invest in its entertainment businesses.

Sony has said it expects to sell 25 million PlayStation 5 consoles this financial year, in what would be a record for a PlayStation device, following the easing of supply chain snarls.

Cumulative sales of the console have topped 40 million.

Nintendo last week reported it has sold 18.5 million units of «The Legend of Zelda: Tears of the Kingdom» since its release in May, helping driving sales of its aging Switch (NYSE:SWCH) console.

($1 = 143.1300 yen)