Sony Corp released an updated view of its electronics businesses financial targets for the 2018 fiscal year, betting on strong performance of the PlayStation 4.
The company projected revenue from its video game segment to range between ¥1.4 trillion and ¥1.6 trillion in the fiscal year ending March 31, 2018, an increase compared to the result of ¥1.29 trillion in the current business year.
Sony also expects revenue from its devices segment, which supplies Apple with image sensors for its iPhones, to reach ¥1.3 trillion to ¥1.5 trillion, up from ¥890 billion.
Under the leadership of CEO Kazuo Hira and the new CFO Kenichiro Yoshida, Sony focused on its restructuring program with the aim to turn the tide around and placed the device, video game and entertainment segments as the three pillars of growth for the company.
The companys mobile business has fallen behind rivals like Samsung and Apple, but Sony said it expects to turn the division profitable again in the 2017 financial year. Last month Sony reported a net loss of ¥136 billion from the mobile division for the current financial year, due to a big writedown of its Xperia business. For 2015 Sony projected that the division will result in an operating loss of ¥204 billion.
“Were not aiming for size or market share but better profits” said Hiroki Totoki, the newly appointed head of the mobile unit. He mentioned that the division will turn more marketing attention to existing customers rather than new ones. Mr. Totoki also said the main goal is to generate profit even if sales drop by 20% or 30%.
Sonys TV division is projected to decrease slightly and revenue to range between ¥1 trillion and ¥1.1 trillion for the fiscal 2018, the company forecast sales of ¥650 billion to ¥700 billion for its camera unit.
Sony has a reputation for stating optimistic forecasts and then failing to reach them, however, analysts say that Mr. Yoshida has proven to deal quickly with problematic areas by reducing costs or disposing divisions, Sony sold its troubled PC unit earlier this year.
Sony Corp gained 6.12% on Tuesday and closed at ¥2 582.5 in Tokyo, marking a one-year increase of 37.29%. The company is valued at ¥2.80 trillion. According to the Financial Times, the 17 analysts offering 12-month price targets for Sony Crop have a median target of ¥2 600, with a high estimate of ¥3 700 and a low estimate of ¥1 400. The median estimate represents a 6.84% increase from Fridays closing price of ¥2 433.5.
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