Sony has released its financials for its third fiscal quarter (FY Q3) of 2018, ended December 31 2018.
According to new financial figures posted by Sony Corp, the real driving profits was from the music sector. Sony Music Entertainment along with its various sub-labels brought in over $2 bn in streaming music revenue alone. That figure rose 22.3% over the previous year, when the major label brought in $1.7 bn from streaming.
Global entertainment and electronics giant Sony reported a record $3.78 bn net profit in Q3.
Operating profits at Sony Music were up $1.35 bn from $361 mn, thanks to a one time gain from the alliance of EMI music publishing. Overall, however, revenues in the music division dipped 9% to $1.92 bn.
Sony Music saw a decline in revenues in the fourth calendar quarter of 2018 (its fiscal Q3). Fuelled by the declines in physical (-22.3%) and download (-18.2%) sales, Sony’s overall annual recorded music revenues in 2018 grew by 1.7%.
The firm’s global recorded music division posted $1.04 bn in the three months to end of December which was down by 8.4% on the prior-year quarter’s $1.13 bn although Sony Music’s 2018 was negatively affected by an accountancy adjustment.
Streaming revenues were Sony’s bright spot in Q4 2018, growing 12.9% year-on-year to hit $555 mn.
This couldn’t balance a severe decline in physical sales, though, with quarterly global revenues from CD and vinyl dropping by $146 mn (-37.8%) year-on-year. Quarterly download revenues fell to $87 mn, down 22.9% on Q4 2017.
In the second half of the last calendar year (H2 2018), Sony’s streaming revenues grew 10.2% to $1.07 bn, while overall revenues dipped 6.3% to $1.99 bn.
Sony’s best-selling recorded artist project (by revenue) in the 2018 calendar Q4 period was Astroworld by Travis Scott.
Sony Corp’s music publishing operation – which now includes Sony/ATV, Sony Music Publishing Japan and EMI Music Publishing posted calendar Q4 (fiscal Q3) revenues of 30.37 bn Yen ($269 mn), up 65.8% year-on-year at constant currency.
Sony’s overall music division including recorded music, publishing and ‘visual media and platform’ posted quarterly sales of 209.35 bn Yen ($1.85 bn) in calendar Q4, down 4.1% at constant currency on the prior-year quarter’s 218.43 bn Yen ($1.93 bn).