Strong Quarter For Sony Music Helps Sony Corp. Turn Profitable Despite Orchard Write-Off

Sony-Music-logo-wordmarkSony Corp beat analyst’s expectations and swung back to profitable in the first quarter of 2016 after posting a loss last quarter.  Helping drive the turnaround was a stronger than expected quarter from Sony Music.

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Sony-Music-logo-wordmarkSony’s Corps Music division sales rose 8.7% rise last quarter to $1,374 million on a year-over-year basis. Beyonce’s Lemonade album helped drive recorded music growth during the quarter.

Sony Music Entertainment digital revenue grey 10% to $461 million even though download revenue fell 18.5% to $162 million. Streaming accounted for $299 million up 38.4% percent from last year.

In edition to falling in income from physical sales and downloads, dragging down SME’s overall music revenue its Orchard indie distribution division.  Sony took a write off by taking a “re-measurement” of its equity interest in The Orchard.”  The Orchard had previously been valued close to $400 million.

Read the full Sony earning report here. 

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