Sony Q3 Profit Beats Estimates; ‘Spectre’, ‘Hotel Transylvania 2’ Lift Film Division

Sony’s overall October-December 2015 operating profit rose to $1.68B, beating analyst estimates. The figure reps an 11% increase from the same period last year and was driven by strong performance of its PlayStation business. Net income was $1B. The entertainment division also saw a major upswing, 26.9% in revenue, to $2.18B. That was largely spurred on by theatrical takings from Spectre and Hotel Transylvania 2. Operating income was $170M, up 227%.

The 24th James Bond movie began its international rollout in late October, first in the UK, and has since grossed $877.5M worldwide. Families started checking into Hotel Transylvania 2 at the tail end of September with $468M to date globally. Upcoming titles include Pride And Prejudice And Zombies on February 5 and faith-based Risen on February 19.

The increase in operating income, Sony said, reflects lower overhead expenses as compared to the same quarter of the previous fiscal year, primarily due to a reduction in incentive compensation expense as well as insurance recoveries related to losses incurred from the cyberattack on SPE’s network and IT infrastructure in the fall of 2014.

The games division saw operating profit $335M, a 45.5% increase on 2014’s Q3 with holiday sales helping the jump. The company has said it will launch PlayStation VR, a virtual reality headset, by June 30. About 7M headsets are projected to be sold by the end of 2016, according to Bloomberg.

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