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Sony’s Mixed Q2 2018 — Operating Income Down, Streaming Music Revenue Up

Daniel Sanchez

Sony's Mixed Q2 2018 - Operating Income Down, Streaming Music Revenue Up

Sony Music had some great results (streaming revenue, licensing revenue), and some bad ones (operating income, downloads, and physical revenue).

Sony has released its financial report for the second quarter of 2018.

For the three months ended September 30th, 2018 (calendar Q3), the Japanese conglomerate’s Music division posted ¥204 billion ($1.83 billion) in operating sales and revenue.  This number dropped 1.3% over the same period last year when the company posted ¥206.6 billion ($1.86 billion).

Sony Music posted an operating income of ¥31.5 billion ($282.5 million), down 3.2% over Q2 2017.  Total recorded music revenue totaled ¥105.5 billion ($945.9 million), also down 3.5% over the same period last year.

Continuing its slow decline into obscurity, physical sales totaled ¥20.4 billion ($182.5 million), down 36% over Q2 2017.  Digital revenue totaled ¥66.9 billion ($600.1 million), up 2.4%.  Downloads made up 15% of that amount with ¥9.8 billion ($87.9 million), down 25.5% over Q2 2017.  Streaming made up 85%, totaling ¥57.1 billion ($512.2 million), up 7.2%.

Other revenue – license revenue, merchandising, and live performances – totaled ¥18.2 billion ($163.2 million), up 10.4% over Q2 2017.

For its first half of 2018 (calendar Q2 and Q3), Sony Music posted ¥42.9 billion in physical revenue, down 42.4% over the same period last year.  Calculating the average Yen-to-USD rate (110.3), this comes out to $389.1 million.

Digital revenue for H1 2018 reached ¥129.7 billion ($1.17 billion), up 10% over the same period last year.  Download revenue totaled ¥20.5 billion ($185.3 million), down 23.3% over H1 2017.  Streaming revenue reached ¥109.3 billion ($990.7 million), up 16.3%.  Other revenue totaled ¥32.6 billion ($295.1 million), up 4% from the same period last year.

For the quarter ended September 30th, 2018, Travis Scott’s Astroworld became Sony Music’s best-selling recorded project.  Luke Combs’ This One’s for You, George Ezra’s Staying at Tamara’s, Camila Cabello’s Camila, and Calvin Harris’ Calvin Harris Releases rounded out the top 5.

Martin Garrix took number 6 with Martin Garrix Releases, followed by Khalid’s American Teen and Kane Brown’s self-titled album.  Future landed at number 9 with BEASTMODE 2, followed by ASAP Rocky’s TESTING at number 10.

 

Featured image by Sony.