Sony BMG Shows Financial Sogginess, Profit Reduction

Sony BMG Shows Financial Sogginess, Profit Reduction

Sony BMG maintained revenue levels during the recent quarter, though profits took a bath.  According to information released by joint venture partner Sony Corp., revenues landed at $1.47 billion, and net income dropped 12 percent to $208 million.  The drop includes a sizable restructuring charge of $13 million, part of an ongoing reduction that continued this week.

Other factors played into the results.  The company cited positive effects from currency fluctuations, as well as strong sales from a collection of key releases.  Top-selling releases for the period came from Alicia Keys, Carrie Underwood, Celine Dion, and Leona Lewis.

A significant windfall from Bertelsmann during the year-ago quarter also produced year-over-year percentage decreases.  That settlement, part of an industry-wide agreement, involved payouts related to an investment in the original Napster.     

A financial summary can be found at http://www.digitalmusicnews.com/stories/013108sony

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