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Sony can't stop making money from PlayStation
Sony's new CEO Kenichiro Yoshida has been at the company's helm for just a few short months now, but fortunately, former chief Kaz Hirai left him an already successful company to run. Yoshida has his own designs for Sony, with a three-year plan to focus primarily on the entertainment and imaging businesses. It's important not to take the favorable position the company is in for granted, though, so we imagine Yoshida is pleased with Sony's latest financial results released today. There's nothing too extraordinary about the numbers, but Sony did record $17.9 billion in revenue for the three months ending in June, from which it extracted nearly $1.8 billion in profit. And yes, no points for guessing PlayStation is responsible for the bulk of that.
Samsung looks to foldable OLEDs as phone sales slow down
As expected, Samsung's Q2 2018 earnings report shows that operating profit is still up from last year and net profit for the same periods came in 0.1 percent lower as growth is slowing. While its memory chip and processor businesses remain strong, the premium smartphone market is "sluggish" and has more competition, so it's introducing the new Galaxy Note slightly earlier this year to expand sales. The new Note 9 will be revealed on August 9th, and could show us what Samsung has planned for its "unbreakable" flexible OLED technology. Samsung said it expected sales of flexible OLED to rebound in the second half, and said "the Company will incorporate more value-added features into panels and reinforce its competencies in new applications such as foldable displays" like the YOUM prototypes it showed off a few years ago or the device already rumored for launch in 2019.
Spotify added 8 million paid subscribers thanks to family plans
For its second ever earnings report, Spotify said it now has 83 million paid subscribers, up 8 million over its first earnings quarter in May. That's a pretty significant boost, and at the top end of what investors were expecting. A lot of that growth has come via its Family Plan program, and Spotify notes that people signing up for it tend to stick around longer than individual subscribers.
Alphabet's quarterly profits fall after $5 billion EU fine
Google's parent company Alphabet is presenting its quarterly earnings today, just a week after Google was hit with a $5.04 billion fine from the EU Commission regarding antitrust violations around Android. But whether or not you take the fine into account, Alphabet posted strong numbers again this quarter. The company's total revenue of $32.7 billion represents a 26 percent increase over Q2 2017. Coincidentally, Google also had to pay a fine to the EU last year, so both of those quarters show much lower profits than they otherwise would. In fact, due to this year's fine, Alphabet's profits of $3.2 billion represents a drop of about 10 percent compared to the $3.5 billion the organization made last year.
Netflix's shows didn't pull in as many new customers as expected
Netflix is spending billions of dollars on new shows and movies this year, with an expectation that this will add to its subscriber base. Unfortunately, over the last three months, that plan didn't work quite as well as it had predicted. In April the company notched 125 million subscribers and predicted it would add 6.2 million more. Today it announced numbers (PDF) that CEO Reed Hastings called "strong but not stellar" growing by 5.15 million customers worldwide with about 670,000 of in the US compared to the 1.2 million it anticipated. Even that number isn't too shabby, since last year during the same period it added 5.2 million people to pass the 100 million subscriber mark. The letter did highlight all of those Emmy nominations, which show that it has delivered quality along with the quantity, plus much of the highly-anticipated content that has yet to debut in 2018. What it didn't go into was any note of the "Ultra" price testing users recently spotted in Europe, or the public response to possible feature restrictions and higher prices. Netflix will stream a video of its earnings call at 6 PM ET on YouTube, and if we hear any interesting answers to those questions or others then we will update this post. Update: The video call is live (embedded after the break), and begins with execs saying the "fundamentals have never been stronger" citing the forecasting as incorrect this time more than any factor slowing growth.
Tesla: Model 3 production could hit 5,000 per week in two months
One of the major stories about Tesla's car business has been its struggle to build sufficient quantities of its Model 3 electric car. In a just-released earnings report the company said that prior to its most recent shutdown, it had managed to build over 2,000 cars per week for three weeks in a row for the first time, and anticipates it will manage 5,000 per week in two months. Following comments from Elon Musk that over-reliance on robots slowed production, the earnings report expanded on that angle. In certain production areas like "portions of the battery module line, part of the material flow system, and two steps of general assembly" it has "temporarily" dialed back automation in favor of semi-automated or manual processes. If it can hit its production goals, Tesla also claims that it can be profitable in Q3 and Q4 of this year. On an earnings call after the release, Musk specifically detailed a "Flufferbot" Tesla created to place fluff on a battery, before determining that humans were better at it and that the fluff wasn't necessary. He also chided journalists for coverage of Autopilot-related crashes, claiming that they shouldn't be writing about it, since, he said, it could lead to people turning off the feature and dying in a crash. Expect to see "quarterly safety statistics" from Tesla about the feature going forward. That people have died with the feature engaged did not come up. Musk also got tired of "boring" questions from investors and turned for a few minutes to crowdsourced questions from YouTube.
Amazon is doing what it does best: Making money hand over fist
With the first quarterly earnings report of 2018, Amazon shows no sign of slowing down. It reported sales of $51 billion in the past few months, which is an increase of 43 percent from this time last year.
Nintendo’s Switch is a moneymaking hit and the future looks good
The last time Nintendo opened its books, we learned that the Switch had already sold more in nine months than the Wii U had in its entire lifetime. But it's only natural that after a spike in interest over the holiday period, things would start to slow down. And that's exactly what we're seeing today in Nintendo's latest earnings, marking the end of its financial year. Over the past three months, Nintendo has shifted 2.93 million Switch consoles. That's nowhere near the 7.23 million figure for the three months prior, but it still pushes total sales up to a tasty 17.79 million.
Samsung shows record profits despite weak demand for mobile OLED
With its latest earnings report, Samsung notched its fourth straight quarter showing record operating profits of $14.4 billion. As predicted, that's mostly due to the memory chips it makes that go inside its phones as well as many other devices, but the most notable element of the report might be its warning of slow OLED sales. Samsung makes the OLED screen fronting Apple's iPhone X, and like other iPhone suppliers, its results imply that shipments and demand have been lower than anticipated. Still, Samsung appears to be expecting a follow-up version in the second half of this year when "OLED panels in the smartphone industry are expected to see a rebound in demand." Apple will report its earnings May 1st, although it doesn't usually provide information on sales of specific iPhone models. As far as its own devices, sales of the Galaxy S9 family were strong along with unexpectedly high numbers for the outgoing Galaxy S8. That's all while Samsung prepares for its next flagship phone later this year, which should be a new Galaxy Note. In TVs, sales were slightly down, but we're keeping an eye on updates about the stunning 8K and MicroLED Wall displays shown off at CES. According to the report, those are both still in the works for a launch in the second half of this year.
Netflix subscriber count hits 125 million
Netflix's first quarterly report for the 2018 financial year shows that after notching its most subscriber additions in Q4 2017 (8.33 million) it barely slowed down. Over the last three months, it added another 7.4 million subscribers (1.96 million of them in the US), its second-biggest quarter ever and enough to hit 125 million subscribers on the dot. The ongoing flood of new content certainly helps, including stunts like its Super Bowl Sunday release of The Cloverfield Paradox. Despite the response from critics Netflix still said: "the event showcased how a big branded film can be marketed and delivered to consumers instantaneously across the globe without a wait for the theatrical window." Meanwhile, the Spanish series Money Heist became its "most-watched non-English series on Netflix ever." As far as the controversy over eligibility for awards like Cannes, Netflix reiterated that it wouldn't do anything that would prevent viewers in France from seeing its films right away. While confirming that it will spend between $7.5 and $8 billion this year on content, there isn't much new to announce. Netflix touched on its expanded agreement with Comcast briefly, and while it didn't reveal bundle prices it said "We believe that the lower churn in these bundles offsets the lower Netflix ASP" so we'd expect some discount. It already as an agreement in the US with T-Mobile, plus Sky, Proximus and SFR Altice in Europe. The company has also posted the video of its earnings q&a call for the quarter. In it, content chief Ted Sarandos declined to comment on rumors Netflix is working on a deal with the Obamas, but shot down rumors of a 60 Minutes-like show, saying: "The move into news has been misreported over and over again." CEO Reed Hastings responded to a question about privacy and data issues like the ones Facebook is dealing with by saying he believes the company is "substantially inoculated" from them, and that he's glad they "built the business not to be ad supported" in opting for a subscription model.
Twitter made its first profit, but still can't grow its user base
Back in October, Twitter promised that by the time the fourth quarter rolled around, it would be profitable, or just about. Since then, however, the company lost its de-facto CEO and continues to raise the ire of figures on both sides of the aisle. It comes as something of a surprise then, that Twitter has managed to turn its first ever quarterly profit of $91 million. If there was ever cause for optimism that the 12-year-old company will survive, it's the fact that it's now making money.
Sony CEO completes quest to make the company successful again
If the news that Sony CEO Kaz Hirai will be stepping down in a few months came as a bit of a surprise this morning, then the latest peek at the company's books is a return to something more predictable. In the third quarter of Sony's fiscal year -- covering October through December 2017 -- its Playstation division continued to pull in the most money. Sales of home entertainment and audio gear, as well as camera components, were particularly strong over those three months; and unlike last quarter, smartphone income was in the positive, too.
2017 was Amazon's best year for new Prime subscriptions so far
Amazon's fourth quarterly earnings results has just come in and, as expected, it was a pretty great holiday season for the online retail giant. According to the release, the company made $60.5 billion in the last few months, which is close to a 36 percent increase when compared to this time last year. It all adds up to a Q4 net income of $1.9 billion, its biggest recorded profit ever, partially thanks to a $789 million tax boost.
Nintendo Switch sales have surpassed the Wii U
In the weeks following the Nintendo Switch's launch, it became clear that the portable-handheld hybrid would do better than its ill-fated predecessor. What's surprising, however, is just how quickly the system has surpassed the Wii U. Nintendo had a stellar holiday quarter, shifting 7.23 million Switch consoles and bringing lifetime sales to 14.86 million. The Wii U, for comparison, sold 13.56 million total — a paltry sum in comparison to the Wii's 101.63 million units. The question is whether Nintendo can maintain the Switch's hot streak; there isn't much beyond Bayonetta, Kirby and the cardboard-folding Labo for 2018 at the moment.
Netflix added 8.3 million customers in Q4, its biggest growth ever
While Netflix is facing more competition than ever, its growth isn't slowing. The company just announced its four quarter earnings results, and revealed that worldwide it added 8.3 million customers, "the highest quarter in our history and up 18 percent vs. last year's record 7.05 million." While the Will Smith-starring movie Bright wasn't a hit with critics, the company seems happy, saying that it's one of the most viewed titles ever and drove a "notable" lift in customer acquisition. As a result, Netflix is planning to invest more in original films, as well as international content to follow its first German original series, Dark. The company counts over 110 million paying subscribers worldwide, with 52 million of them in the US. The letter suggests it will continue on as planned, investing more money in original content as mentioned above, encompassing second seasons of The Punisher and Mindhunter, and overall deals like the ones it reached with OITNB/Glow creator Jenji Kohan. The letter did not mention Kevin Spacey or Danny Masterson by name, however it did note that "We took a $39m non-cash charge in Q4 for unreleased content we've decided not to move forward with," without specifying what it referred to. We'll have to wait until 6 PM ET to see the video of its earnings call to find out if there's any comment on those situations, or Mo'nique's recent call for a boycott. Update: The video earnings call is live, and it provided a few quotes on some things we were wondering about. Regarding that cash charge, exec Ted Sarandos referred to it as "related to the societal reset around sexual harassment." Source told Deadline and the Financial Times that the charge related to Kevin Spacey's departure, covering both House of Cards and the Gore Vidal biopic it had planned to release this year. CEO Reed Hastings said of Bright that many of the critics are English speaking or in the US, and "disconnected from mass appeal" worldwide. According to Sarandos, both the movie and season two of Stranger Things matched Netflix's adoption almost perfectly around the globe, showing how content can travel. Finally, they didn't appear to be afraid of Disney's upcoming contender, with or without Fox content. "I'll be a subscriber," said Hastings.
Kodak cuts 425 jobs as film revival treads water
Kodak has lost $46 million this quarter and will lay off 425 employees, indicating that its film resurgence is still a work in progress. The company chalked up $46 million in losses (compared to a $12 million profit in the same quarter last year), to a slowdown in the printer market and rising cost of aluminum used in its products. The company's Consumer and Film division, which manufactures movie film for its upcoming Super 8 camera and the motion picture industry, also lost money.
The only Sony division to lose money this quarter was Mobile
Kaz Hirai's slimmer, fitter Sony hasn't just turned a corner, it's well on its way to earning its highest annual profit in years. The latest update on the company's financial health revealed that it pulled in $18.25 billion in revenue and squeezed out a quarterly net profit of $1.15 billion. As usual, it's Sony's two most prized businesses that stand out on the balance sheet: PlayStation and smartphone image sensors.
Samsung collects record profits, again
Last year at this time Samsung's profits suffered a blow due to exploding Galaxy Note 7s, but this year -- despite ongoing executive turmoil as it has appointed new presidents for three key divisions -- the product lineup is performing as expected. Not coincidentally, Samsung has announced it set a record high $12.91 billion operating profit for the third quarter (keeping the streak going), more than triple what it notched last year during the same period. However, while the company called Galaxy Note 8 sales "strong" its mobile earnings actually declined as people opted for cheaper phones. The money is in Samsung's chips and displays, which go into things like servers as well as phones -- whether they're Samsung Galaxys or something else, like its OLED screens that are in the soon-to-debut iPhone X.
For Microsoft, it's all about the cloud
Microsoft's first quarterly earnings for 2018 (the company starts its fiscal year in July) continues the trend seen in the last one. It reported $24.5 billion in overall revenue, which is a 12 percent increase from this time last year. Notably, Surface sales has gone up for the first time in a long while. After a decrease last quarter, Surface revenue actually increased by 12 percent year-over-year this time around, which is probably in large part due to the newly released Surface Laptop and Surface Pro. That said, cloud revenue continues to dominate Microsoft's earnings, raking in almost $20 billion this past quarter. Azure commands an impressive 90 percent revenue increase from this time last year and income from its office products has gone up as well. Office 365 commercial revenue has increased by 42 percent while the consumer version of Office 365 now has 28 million subscribers. Though those two sources of income are up, revenue from the overall personal computing market remains relatively stagnant. Windows OEM revenue went up by just four percent and commercial Windows and cloud services increased by seven percent. Gaming revenue didn't move much either, with only a one percent increase, which means that not a lot of people are buying Xboxes. Microsoft did say that revenue from Xbox software did go up by 21 percent, so it seems that current owners are spending some money on the platform at least. The growth here is driven by digital distribution and strong game sales, though there are no details on which ones. CEO Satya Nadella also said that this growth in Xbox services shows an "early stage potential" for additional revenue streams from programming like eSports and livestreaming. "Our results reflect accelerating innovation and increased usage and engagement across our businesses as customers continue to choose Microsoft to help them transform," said Nadella in a statement.
LG's phone arm continues to eat away at its profits
One of the great problems with being a popular musician or comedian is that your audience is always aching for you to play the greatest hits. That can get pretty boring, especially if you want to be known as an artists with a broader, or deeper, body of work than just Achy Breaky Heart. Bear that in mind for poor LG which, yet again, has to announce that its mobile division is a furnace that turns money into ashes and dust.
