Sony takes $976 mln charge on movie segment as DVD market shrinks (updated)
30/01/2017 09:35
* Sony books $976 million impairment charge in Q3
* To lower its stake in M3 Inc to improve finances
* To record 37 bln yen gain within operating income from
sale
(Adds background, sale of online unit M3)
TOKYO, Jan 30 (Reuters) - Sony Corp 6758.T said it booked
an impairment charge of 112.1 billion yen ($976 million) on the
goodwill value of its movie segment in the quarter ended
December, as online streaming services sapped demand for movie
DVDs.
The impairment charge came as Sony cut its outlook for
profits from DVD, blue ray discs and other home entertainment
operations in line with a broader market decline, the company
said in statement on Monday.
Sony has been working to revive its movie business. In
November, the Japanese conglomerate's chief financial officer,
Kenichiro Yoshida, said a turnaround was "progressing, but it
takes time for the benefit to be realized".
Earlier this month, the Japanese conglomerate said Michael
Lynton, the chief executive of its movie and television unit
Sony Entertainment, will step down in February. urn:newsml:reuters.com:*:nL4N1F35BP
In its latest statement, Sony also said it would cut its
stake in M3 Inc 2413.T , operator of membership-based
medical-related online services, to 34 percent from 39.3 percent
in a bid to strengthen its financial standing.
It expects to record a gain within operating income of about
37 billion yen from the sale during the fourth quarter of the
fiscal year ending March 31, Sony added.
Sony said the impact of the impairment charge and stake sale
on the group's earnings outlook for the current fiscal year is
being evaluated and will be disclosed when it releases its
third-quarter results on Feb. 2.
($1 = 114.8300 yen)
(Reporting by Makiko Yamazaki; Editing by Himani Sarkar)
((Makiko.Yamazaki@thomsonreuters.com; 81-3-6441-1039;))
Keywords: SONY OUTLOOK/