MUMBAI: Japanese consumer electronics conglomerate Sony has announced a second quarter loss of 15.5 billion yen which is about half of the year-ago loss of 27 billion yen.

In the film division, sales decreased by 3.7 per cent year-on-year to 163 billion yen. The decrease in revenues in the current quarter was primarily due to the sale of a participation interest in Spider-Man erchandising rights in the same quarter of the previous fiscal year, partially offset by higher theatrical revenues for the current year?s release slate which benefitted from the strong performance of The Amazing Spider-Man.

Television revenues were essentially flat year-on-year as higher US television network programming revenues were offset by lower US made-for-cable programming revenues.

Operating income decreased by 12.7 billion yen year-on-year to 7.9 billion yen. This decrease was due to a benefit of 21.4 billion yen from the sale of the above-noted interest in Spider-Man merchandising rights in the same quarter of the previous fiscal year, partially offset by the stronger performance of the current year?s film slate in the current quarter. The current year?s film slate included the strong performance of The Amazing Spider-Man, partially offset by the underperformance of Total Recall. Higher US television network programming revenues and lower production expenses for new U.S. television network and made-for-cable television programming in the current quarter also partially offset the decrease in operating income.

In music, sales decreased by 4.3 per cent year-on-year to 99.2 billion yen. The decrease in sales was primarily due to a recognition of digital license revenue in the same quarter of the previous fiscal year and the continued worldwide contraction of the physical music market. Best selling titles during the quarter included P!nk?s The Truth about Love, Kana Nishino?s Love Place, and Michael Jackson?s Bad ? 25th Anniversary.

Operating income increased 1.5 billion yen year-on-year to 7.9 billion yen. Operating income increased primarily due to significantly lower restructuring charges and improvement in the performance of the recorded music business in the U.S. and Europe, partially offset by a benefit from the recognition of digital license revenue in the same quarter of the previous fiscal year.

The gaming division sales decreased by 15.8 per cent year-on-year to 148.2 billion yen. This decrease was primarily due to lower sales of hardware and software of the PlayStation 3 and PSP partially offset by the contribution of the PlayStation Vita introduced in December 2011.

In home entertainment and sound, sales decreased by 25 per centyear-on-year to 236 billion yen. This decrease was primarily due to a decrease in LCD television unit sales.Operating loss decreased 26.0 billion yen year-on-year to 15.8 billion yen. The lower operating loss was primarily due to reductions in LCD panel related expenses and operating expenses associated with the Television Profitability Improvement Plan announced in November 2011.

In Televisions, sales decreased by 31.5 per cent year-on-year to 146.7 billion yen and operating loss decreased by 30.5 billion yen year-on-year to 10.2 billion yen.

Sony?s overall sales were 1,604.7 billion yen, an increase of 1.9 percent compared to the same quarter of the previous fiscal year. This increase was primarily due to a significant increase in sales in the Mobile Products and Communications (MP&C) segment, while sales in the Home Entertainment & Sound HE&S segment decreased significantly resulting from a decrease in LCD television unit sales.

On a constant currency basis, sales increased by three per cent year-on-year.

The increase in MP&C segment sales was primarily due to the impact of the consolidation of Sony Mobile as a wholly-owned subsidiary from February 2012. During the same quarter of the previous fiscal year, Sony Mobile was an affiliated company accounted for under the equity method.

Operating income of 30.3 billion yen was recorded, compared to an operating loss of 1.6 billion yen in the same quarter of the previous fiscal year. This improvement was primarily due to an improvement in the operating results of the Devices segment, and of the HE&S segment, mainly reflecting cost reductions in LCD televisions.

Restructuring charges, net, decreased 17.3 billion yen year-on-year to 11.5 billion yen. This decrease was primarily due to 18.4 billion yen in asset impairments recorded in the Devices segment in the same quarter of the previous fiscal year associated with the sale of the small- and medium-sized display business.

Operating results during the current quarter were favorably impacted by a net benefit of 13.2 billion yen from insurance recoveries relating to damages and losses incurred from the floods in Thailand which took place in the fiscal year ended March 31, 2012, and a gain of 8.2 billion yen from the sale of the chemical products related business recorded mainly in the Devices segment.