MUMBAI: According to Q3 ended 31 December 2014, Sony's Music segment witnessed an increase in sales by 13.1 per cent (3 per cent increase on a constant currency basis), compared to the same quarter last year. However, according to the February forecast, sales and operating revenue is expected to be ? 520 billion and operating income is expected to be ?53 billion.

One Direction's 'Four', AC/DC's 'Rock or Bust', Pink Floyd's 'The Endless River', Foo Fighters' 'Sonic Highways' and Garth Brooks' 'Man Against Machine', were the label's best-sellers. Due to strong performance of several releases and higher digital streaming revenues, recorded sales witnessed growth on constant currency.  

Music sales are expected to be higher than the October forecast, primarily due to the favourable impact of foreign exchange rates. Operating income is also expected to be higher than the October forecast, due to foreign exchange rates and increase in recorded music sales in Japan.

In Q3 of last FY, the sales and operating income was ?144.7billion, however, the Q3 of on-going FY reported ?163.6 billion ($1,352 million). The company stated that the increase in sales was primarily due to the favourable impact of the depreciation of the Yen against the U.S. dollar, and an increase in visual media and platform sales. However, operating income increased by ?3.7 billion year-on-year to 25.4 billion yen (210 million U.S. dollars), from ?21.7 billion in the same quarter last year. Sony's Music division witnessed sales of ? 116.8 billion (US$ 1,071 million) in the last quarter.

However, the gain recognised on the sale of Sony Pictures Entertainment's (SPE) music publishing catalogue in the nine month period of the previous fiscal year, was one reason for the decrease of operating income for SPE.

According to consolidated results forecast for Q3 ending 31 December 2014 for Sony Corporation, equity in net income of affiliated companies, recorded within operating income, is expected to decrease by ?1.6 billion year-on-year to ?0.04 billion. This decrease is expected mainly due to a deterioration of equity in net income (loss) for EMI Music Publishing. Last quarter, the operating income increased primarily due to an improvement in equity in net income (loss) from EMI Music publishing and a reduction in selling, general and administrative expenses.

Sony Music is comprised of the recorded music, music publishing and visual media and platform categories. Recorded music includes the distribution of physical and digital recorded music and revenue derived from artists' live performances; music publishing includes the management and licensing of the words and music of songs; visual media and platform includes various service offerings for music and visual products and the production and distribution of animation titles.

Overall, sales and operating revenue are expected to be ?2,557.8 billion ($21,139 million), an increase of 6.1 per cent as compared to the same quarter of the previous fiscal year. Sony revised its consolidated forecast for the fiscal year ending31 March, 2015 as ?8,000 billion for sales and operating revenue.

(The results presented in music include the yen-translated results of Sony Music Entertainment (SME), a US-based operation which aggregates the results of its worldwide subsidiaries on a US dollar basis, the results of Sony Music Entertainment (Japan) Inc., a Japan-based music company which aggregates its results in yen, and the yen-translated consolidated results of Sony/ATV Music Publishing LLC ('Sony/ATV'), a 50 per cent owned U.S.-based joint venture in the music publishing business which aggregates the results of its worldwide subsidiaries on a U.S. dollar basis.)