Sony’s Movie Earnings Tumble

Sony Corp.’s movie business was hammered in the fiscal year ended March 31 by the strong yen, four big money-losing films and a lull in television revenue. But its music business proved lucrative.

Sony reported Thursday that music operating revenue soared to $4.5 billion, while its movie division revenue sank to $3.2 billion, for total entertainment revenue of $7.7 billion. In U.S. currency, Sony said, music revenue climbed 22% while revenue dropped 7% for its pictures group, which includes the Columbia and TriStar studios as well as television and movie theater operations.

More problematic was the earnings before interest, taxes, depreciation and amortization for Sony’s overall entertainment business. Sony said that fell to $646 million from $904 million a year earlier. About 70% of that is believed to come from music, boosted by sales from such artists as Mariah Carey and Pearl Jam.

Industry sources said Sony’s biggest losers were four films: “I’ll Do Anything,” “Last Action Hero,” “Lost in Yonkers” and “Geronimo: An American Legend.” The most publicized bomb, “Last Action Hero,” is estimated by industry sources to have lost about $25 million. But sources said the erstwhile musical “I’ll Do Anything” lost more, and “Geronimo” may as well.

Sony’s most profitable films were said to be “Sleepless in Seattle,” “Cliffhanger” and “Philadelphia,” from TriStar, and Columbia’s “In the Line of Fire.” Sony’s theater and TV business also did well.