TIL Desk/Business/Tokyo- Sony Corp said it booked an impairment charge of 112.1 billion yen ($976 million) on the goodwill value of its movie segment in the quarter ended December, as online streaming services sapped demand for movie DVDs.
The impairment charge came as Sony cut its outlook for profits from DVD, blu-ray discs and other home entertainment operations in line with a broader market decline, the company said in statement on Monday.
Sony has been working to revive its movie business. In November, the Japanese conglomerate’s chief financial officer, Kenichiro Yoshida, said a turnaround was “progressing, but it takes time for the benefit to be realized”.
Earlier this month, the Japanese conglomerate said Michael Lynton, the chief executive of its movie and television unit Sony Entertainment, will step down from the position in February. He will remain at Sony for six months to help find a successor.
In its latest statement, Sony also said it would cut its stake in M3 Inc, operator of membership-based medical-related online services, to 34 percent from 39.3 percent in a bid to strengthen its financial standing.
