Sony Posts Loss, Drop in Revenue for Movie Business

Sony Corp. on Wednesday disclosed that its movie business posted an operating loss as well as a drop in revenue in the quarter ended Dec. 31, reflecting a disappointing slate of holiday films such as “Mary Shelley’s Frankenstein,” “Mixed Nuts” and “Road to Wellville.”

Sony did not break out the actual loss for Sony Pictures Entertainment in releasing results for its third fiscal quarter, but did say that the loss was narrower than in the year-earlier period. Revenue for the picture group was down slightly, to $763.9 million.

Sony’s overall entertainment segment, which includes a very profitable music division, posted operating income of $176.6 million in the quarter. For the nine months, Sony’s entertainment unit lost $2.8 billion, reflecting a huge $2.7 billion write-down the company took last fall related to problems with its movie business.

Ironically, news of the loss in the quarter comes as Sony’s box office fortunes--at least so far this year--have started to turn somewhat.

Three of the company’s current films--”Legends of the Fall,” “Little Women” and “Higher Learning”--have consistently ranked among the box-office leaders since the start of the year. Sources say all three films are expected to turn a profit. But the just-released Sharon Stone film “The Quick and the Dead” remains a question mark after its relatively weak opening.

Although it is very early in the movie-going race for 1995, Sony nonetheless ranks first with about 25% of the box office.

The company’s main test, however, will come during the heavy summer and holiday movie season. Some of the bigger pictures Sony is betting on this year include the summer epic “First Knight” with Sean Connery and Richard Gere and the action film “Money Train” this fall with Wesley Snipes and Woody Harrelson.

Overall, Sony Corp. posted a 50% rise in earnings in the quarter to $253 million, due mainly to increases in its electronics and music business.