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Sony Pictures swings to profit, thanks in large measure to TV side

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Sony Pictures was one of the few bright spots in Sony Corp.’s glum fiscal first-quarter results. While the electronics and entertainment conglomerate lost $390.5 million, Sony Pictures, which includes the movie studio, television and international holdings, swung to a profit of $19 million, from a loss of $78 million, in the year-ago period that ended June 30. Keep in mind that Sony reports its results in yen, so that $78 million, given currency fluctuations, translates to about $87 million now.

Much of that gain can be attributed to the studio’s sale of a portion of its stake in the Game Show Network cable channel to Liberty Media for $87 million (pure coincidence with $87 million above). The studio also got a boost from the sale of its films to cable networks. Revenues for Sony Pictures were up 15% in U.S. dollars to about $1.8 billion, thanks to the strong overseas performance of ‘Angels & Demons’ and ‘Terminator Salvation’ as well as ad revenue from India, where one of Sony’s channels broadcast the Indian Premier League cricket competition.

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Sony’s positive entertainment news comes on the heels of tough quarters for Viacom’s Paramount Pictures, which posted a 22% decline in revenue and lost $25 million. Time Warner’s Warner Bros. saw revenue fall 9%, although it posted operating income of $143 million, a 52% gain, thanks in part to some pretty severe cost cutting and the surprise success of the ‘The Hangover.’

-- Joe Flint

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