Sony Music Entertainment received an 8.2% increase in revenue in the second quarter ending June 30th, to $1.3 Billion from $1.27 billion during this time last year. Sony’s operating income dropped from $310 million last year in Q2 from $155 million in Q2 2016.
This increase is attributed to growth in streaming and Sony’s visual media and platforms. The operating income was tied to “re-measurement of SME’s equity interest in THE ORCHARD.” Subtracting the latter’s $151 million boost to operating income from the prior year’s operating income leaves it with $159 million — meaning its $155 million in operating income performance this year represents a slight decline over last year at the same period.
SONY reported that digital revenues increased to $461 million up 10%. Download revenue dipped to $162 million or 18.5%. Streaming revenue accounted for $299 million, up 38.4% from last year’s $216 million.
The company’s recorded music operations — SMI and SONY MUSIC JAPAN — saw a revenue increase of $874.5 million from $871 million. Music publishing revenue fell 12.6% to $152 million from $174 million.
SONY’s physical sales accounted for $281 million, about 32.1% of total revenue, down $324 million, or 37.2% of total revenue, from 2015.
Other music revenue (synch licensing payments and neighboring rights royalty payments) totaled $131.7 million or 15.1% of total revenue, up slightly from $127 million, or 14.6%.
SONY CORP. revenues overall fell to $15.66 billion from $17.63 billion during the quarter, while net income fell to $205 million from $803 million.
