Sony widened its full-year net loss forecast to 230 billion yen (Dh7.8bn) from a 50bn yen loss and suspended its dividend after writing down the value of its smartphone business. Shares fell in German trading.
The Tokyo-based company said its loss for the year would be bigger than previously forecast because of a writedown of 180bn yen in the value of its phone business due to competition in the market, the company said in a statement today.
Chief executive Kazuo Hirai is struggling to revive Sony through content, consoles and mobile devices. The company has lost money in five of the last six years amid declining demand for televisions and compact cameras.
“The size of it is larger than expected, but the movement they’re taking is largely in-line in the last two or three months this year,” said Damian Thong, a Tokyo-based analyst at Macquarie Group.
German-traded shares of Sony fell 7.1 per cent, the most since October 31, to €14.50 (Dh69).
Sony lost 1.8 per cent to 2,123.5 yen in Tokyo trading today, paring a 16 per cent gain this year.
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