Sony shrinks quarterly losses amid plans to return to profit

Sony’s recovery plan is showing signs of success, with the company having shrunk its quarterly losses by 75 per cent during the fourth quarter of 2012.

The company reported a 10.8 billion yen (£74 million) deficit for the October-December period, down from 159 billion yen (£1 billion) during the same quarter in 2011. Meanwhile, it grew its revenues by nearly 7 per cent to 1.9 billion yen (£13 million).

Despite a drop in sales for its consumer products - its games, camera and TV departments all reported declining demand - Sony expects to turn a profit next quarter, with its mobile division due to give it a significant boost. Meanwhile, its entertainment division saw an increase in revenues during the fourth quarter, with the release of blockbusters like Skyfall likely helping its sales. The company also pointed to the recent offloading of its New York headquarters for $1.1 billion (£660 million) as a boon to its prospects.

The impending launch of its next-generation PlayStation 4 will also likely stem losses in Sony’s gaming division, where consumers are likely to have been holding out for the anticipated new home console.

Sony has faced disastrous losses over the past four years, but last year announced plans to turn around its fortunes under the leadership of Kazuo Hirai, who was appointed as president of the company nine months ago.

Sony’s shares jumped by 2.5 per cent following the news.

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