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Australia's Foxtel nets 40,000 new subscribers since HD+ launch
Only a few months have passed since Australia's Foxtel launched its HD+ service, and judging by the numbers, Aussies are warming to high-def. The carrier just posted a 17% rise in revenue (up to $1.7 billion), and it's expecting the numbers to remain high as more consumers cave to the temptation of high-definition programming. Furthermore, 40,000 new users have signed on since the HD+ launch, and the average revenue per user has skyrocketed to nearly $85 per month "as a result of a higher take-up of additional services such as Foxtel iQ." There's no specific mention of additional HD channels, but given that bigwigs surely realize how critical they are to revenue growth, we can't imagine them not giving you folks a few more here shortly.
Warner Music wants more money for licensed songs
Developers vying for a slice of the rhythm game pie may soon find the cost to dig in to be increasing -- at least if they want players to nod along with music they know. According to Reuters, Warner Music's top exec Edgar Bronfman has come forward, stating that game companies should pay more to the music industry in order to include licensed tunes in their music-based games.Says Bronfman, who compared the relationship to the likes of MTV or Apple's iPod, "The amount being paid to the music industry, even though their games are entirely dependent on the content we own and control, is far too small." Given Warner's interest in music currently flowing through both Guitar Hero III and Rock Band, not to mention the war that is about to unfold on living room stages later this year, it will be interesting to see who will 5-star this game of financial tug-of-war.
Softbank's operating profit climbs 8.1%, isn't good enough
Seen exclusively, an 8.1% rise in operating profit is pretty remarkable. But when you consider that rival NTT DoCoMo just posted a 41% boost in profits... well, you get the point. Unsurprisingly, Softbank was able to increase its profits by reducing the amount of subsidies it applied to phones -- which obviously led to fewer new handset sales overall -- but analysts were still perturbed by the amount of discounts it did hand over. Reportedly, the street was expecting operating profits to top ¥86.1 billion ($805.7 million), but the outfit wound up missing the mark by a cool billion yen ($9.36 million). As for the iPhone 3G influence? Gotta wait 'til next quarter, bub.[Via mocoNews]
Mobile phone sales drop 20% in Japan on less bountiful carrier subsidies
It doesn't take a finance major to figure out these two things are correlated, but yes, the fact that NTT DoCoMo saw profits increase some 41% while handset sales across Japan plummeted 20% do in fact have a common link. You see, DoCoMo (among others) has decided to lower rates and reduce subsidies in order to better exploit market conditions; the end result is that consumers are buying new handsets less often, leading to decreased sales for firms like Sharp and Matsushita. Many analysts are suggesting that some of the smaller outfits are likely to band together in an attempt to take on the new market, with IDC analyst Michito Kimura proclaiming that Japan would have "fewer mobile phone makers, fewer handset sales agents and fewer cellphone models." Hard to say if that's a net positive or negative just yet, but it should be interesting to watch, regardless.[Via mocoNews, image courtesy of Flickr]
Motorola manages minuscule profit, clings to bronze medal
It has been a solid tick since Motorola had a quarterly earnings report that it didn't just send over via the paper airplane method and run for the hills, but the most recent one was actually worth cracking a smile over. After moving more mobiles in North America than it expected too, shares shot up 13% and bullish analysts began to think that the worst was over. Chief Executive Greg Brown noted that Moto will be "adding substantially to its product portfolio" here in the near future, which will hopefully enable it to get a stronger grasp on the number 3 handset maker ranking. During the most recent quarter, the outfit shipped 28.1 million phones to just barely maintain its market share lead over LG, though it remains to be seen if it can keep this up. No pressure Moto, no pressure at all.[Via RCRWireless]
Activision quarter profits double on Kung Fu Panda, Guitar Hero
After teasing its financial fortitude earlier this month, Activision continued to fill its already fat wallet during the most recent fiscal quarter, today announcing that the company more than doubled its profits to $59 million on record sales of $654 million, a 32 percent jump over the same time last year. Unsurprisingly, both Guitar Hero: Aerosmith and On Tour played a key role in Activision's economic well-being, as did the tie-in with Dreamworks' Kung Fu Panda. Looking ahead, with Activision finally sewing up its mash-up with PC powerhouse Blizzard just weeks ago, the conglomerate now expects to report revenue of $636 million for the current quarter, and if we listen closely we can almost hear the coffers at Actilizzard bursting at the seams.
Sony Ericsson drags hard on Sony's numbers
It's easy to think of Sony Ericsson as a little drop in parent Sony's gargantuan bucket, but yeah, that's not so much the case. News of the manufacturer's dismal fiscal performance did its fair part in sending Sony's earnings into a free fall, thanks to a cash payout just 3 percent of what it was a year ago -- ¥17.1 billion all the way down to a meager ¥0.6 billion. Talk of Sony's exit from the joint venture is terribly, terribly premature, but you've got to wonder: since the company isn't really a holistic part of the Sony ecosystem, how many consecutive quarters would a crappy balance sheet be tolerated? [Warning: PDF link][Via mocoNews]
Matsushita profit soars 86% on the wings of high flat-panel sales
So Sony didn't do so hot this quarter, but that's not to say someone else can't have fun at its expense. Matsushita Electric just posted its most recent quarterly earnings, and needless to say, it's probably pretty stoked about the 86% rise in profit. According to reports, the majority of the credit goes to digital camera and flat-panel television sales, and even though sales actually decreased 4%, operating profit still rose 48% from a year prior. Good to see someone's making sure that flat-panels rule the consumer electronics roost in 2008.
NTT DoCoMo posts 41% profit increase on reduced handset subsidies
Go 'head with your bad self, NTT DoCoMo. Party on down 'til six in the morning, because you just posted a quarterly profit increase of 41%. What's to thank for such a remarkable boost? According to a Bloomberg report, the outfit's decision to "reduce handset subsidies to customers" enabled it to bring in more cash despite the fact that sales fell 1.1% in the same quarter. President Ryuji Yamada proclaimed that the "acceptance of the monthly handset payment plan by our users helped bolster profits in the quarter," and he also highlighted a "considerable decline in the cancellation ratio." Still, some analysts are uncertain if the telecom company can maintain the growth, with Deutsche Bank AG's Kenji Nishimura stating that the "increase in profit was merely caused by the change in the accounting." Snap DoCoMo, are you just going to take that?[Via mocoNews, image courtesy of Flickr]
Nintendo Q109 results drown company in billions
"It prints money" just isn't going to cut it anymore in conveying Nintendo's cash flow. The House of Mario announced today that in its first quarter the company brought in $993 million (+34%) in profit! Net sales were up 24% to $3.91 billion. The company sold 5.17 million Wii consoles globally (+50%) and 6.94 million DS units, which means the total lifetime sales of the units are 29.62 million and 77.54 million units for the Wii and DS, respectively.In the software department, Mario Kart Wii drove away with 6.42 million units sold and Wii Fit continued its quest to save the Fat Princesses with 3.42 million units in people's homes -- more than likely collecting dust, along with the Bowflex and Thighmaster. Nintendo maintains its forecast of reaching a net profit of $3.04 billion and operating profit of $4.97 billion by the end of its fiscal year in March '09.
Sony games division posts profit
The beginning of the PS3 life cycle was not good for the company coffers. The launch period resulted in significant losses for Sony. Q1 2008 for PlayStation resulted in a ¥29.2 billion loss (US$276 million). Look how quickly things have turned around, though. The first quarter of Sony's new fiscal year (April-June) has shown the games division posting a profit, albeit a small one. The games division was responsible for ¥5.4 billion in operating income (or US$51 million).What's responsible for the startling change in profitability? Strong sales of the PS3 and PSP, of course. PS3 sold 1.56 million units this quarter, more than double that of Q1 2008. More importantly, 22.8 million units of PS3 software were sold during this time, an increase of 385% from the same period last year. PSP sold 3.72 million units that quarter as well.This news will undoubtedly come as good news for investors. However, with so much money still lost on the PS3, Sony will need a few more quarters of strong earnings to recoup the costs of launching the PS3 into our homes.[Image source]
Sony's profits drop drastically this quarter, 'Spider-Man 4' needed badly
According to Sony's latest earnings report, the company's profits have dipped to almost half of what they were at this time last year. Analysts are citing a strengthened yen, the lack of a major Hollywood blockbuster like Spider-Man 3, and continuing issues with its mobile phone arm as core reasons for the slide. It's no surprise that the company is taking a hit, especially after the outrageously poor performance of Sony Ericsson, though the numbers reveal that even improved sales of the PS3 this quarter can't sustain losses from core businesses like Sony BMG and fluctuating currency rates. Looks like the champagne will have to stay in the fridge this quarter.
PSP hardware and software sales for Q1 2009
The first quarter of Sony's new fiscal year (Apr-Jun 2008) has proved to be quite successful for the PlayStation brand. The gaming division posted a profit of $51 million, a stark change from PS3 loss-driven quarters in the past. PSP played a significant role in bringing PlayStation to profitability, with increasing hardware and software sales.During this period, PSP sold 3.72 million units worldwide. This is an increase of 75% over Q1 2008. Software sales went up to 11.8 million units, an increase of 20%. While improving software sales is a good sign, this total still trails significant earnings from both the PS2 and PS3.PSP has been meeting incredible success all over the world, especially in Japan. With sales the way they are now, there's little reason to believe the trend will change any time soon.
Samsung SDI expected to post first profit in two years
Samsung SDI has definitely been on the offensive of late, producing the world's first WVGA OLED panels for handhelds, a 3D AMOLED display and plans to crank out medium to large OLED TVs in just a year or so. Its efforts are paying off, as the firm is expected to post its first profit since dipping into (and remaining in) the red back in Q1 2005. According to Kim Dong-won, an analyst at Hyundai Securities, the outfit is forecasting a ???3.1 billion ($3.05 million) profit for Q2 2008 -- quite a bit better than the ???31 billion ($30.5 million) in losses analysts were expecting. Here's a hint for staying in the black: get a few big screen OLED HDTVs out before everyone else. Simple, right?
Forum post of the day: Beta buying blues
Now that Blizzard has confirmed that beta keys from Blizzcon 07 and Worldwide Invitation 08 will be used to get into the Wrath of the Lich King test, they've become a pretty hot commodity. Sure they're for sale on eBay ranging from about $200 to $600, but what are they worth. I kind of wish I'd been able to go to one of those events to guarantee a spot in the beta. This same thing happened during the beta release of the Burning Crusade. Cheesytacos of Dragonblight thinks it's unfair to folks who win the beta lottery that folks are selling their beta keys for profit. For those willing to part with their keys, the sale price is at least worth the price of admission. I have to admit, it's well, annoying that folks who went to Blizzard's little soirées are granted passes into the new content. We come across the issue of property ownership many times in WoW. In general the assumption is that all things WoW are not actually the property of the players but of Blizzard. Are beta keys the property of the key holders to do with what they please until activation?
Sony Ericsson sees net profits fall 97%, looks to cut 2,000 jobs
Sony Ericsson warned the world just over a fortnight ago that things wouldn't be too rosy when it came time to announce Q2 results, and rosy things are not. Even though the handset maker was hoping and praying to break even at the end of the quarter, net profits ended up falling through the floor to the tune of 97%. As predicted, weak sales of mid-to-high-end mobiles were blamed for the bulk of the bad news, and it did affirm that conditions would remain rough for the rest of the year. Granted, the looming launch of the Xperia X1 should help matters a bit, but without a new stable of low-end cellies to send to emerging markets, it'll be a long road back to the top. Unfortunately, SE's sagging position in the market has left it slashing 2,000 jobs across the globe, though it didn't say exactly where the cuts would be made. It's okay SE, there's only one place to go when you're laying on the bottom... or something like that.[Image courtesy of Flickr]Read - Sony Ericsson's Q2 earningsRead - Sony Ericsson plans job cuts
Unsubsidized iPhone prices
Stories about cell phone unlocking and resales have hit the news recently. TracFone sued numerous resellers who (legally) bought inexpensive subsidized units, unlocked them and sold them overseas. In the iPhone world, the story differs. Rather than leveraging subsidized prices, the way the TracFone defendants did, iPhone resellers added value on top of the unsubsidized units. They bought the phones, unlocked them and sold them for a profit. The story gets more interesting with the current generation "no commitment" iPhones. The latest 3G "no commitment" iPhone pricing appears to include an extra $200 profit margin on top of the $200 subsidy. TUAW reader Adam Jenkins offers proof. In Massachusetts, purchasers pay tax on the full unsubsidized phone price, regardless of carrier subsidies. The 5% sales tax for his new 16GB 3G iPhone came to $24.95. Clearly, Apple and the State of Massachusetts believe the unsubsidized 16GB price is $499, not the $699 "no commitment" price. That extra $200 offers a nice cushion on top of the unsubsidized sale, providing pure profit. What's the opposite story of resellers taking advantage of cell phone subsidies? Seems to be the 3G iPhone.
Forum post of the day: Using the Auction House properly
The economy in WoW has some interesting nuances. Players spend oodles of WoW gold on their crafting professions, and sometimes manage to turn a tidy profit. I'm often surprised to see some items that are strongly in-demand, like Light Feathers. Shrewd players use the auction house to build their bankrolls. Lomentari of EU-Draenor is exasperated with people who fail to use the auction house "properly." She is angry that other crafters are selling the same product she creates for several gold lower than her preferred price. The items are placed on the auction house en masse at the low low rate, which the original poster blames on Leather Workers skilling up. She feels powerless to do anything about her "massive money loss." The original poster is willing to accept small cuts in pricing, but has a hard time deal with steep declines in prices.
LG Display to post huge Q2 profits, LCD sales expected to slump in coming quarters
While we just heard last month that flat-panel sales would be spearheading 2008 consumer electronics growth, a new outlook has those very sales looking bleak for the remainder of the year. The news come amidst the expectation of LG Display to post profits for Q2 that "more than [triple] thanks to strong demand for TVs and tight supplies of PC panels." According to James Kim, an analyst at Lehman Brothers, "earnings have peaked in the second quarter," and while he asserts that "demand to replace TVs with flat-screen models is still there, fewer consumers are buying large-size TVs because of the weak economy." Still, sales of smaller sets are expected to steadily climb in emerging markets as the Beijing Olympics draw near, but it remains to be seen how large an impact those markets will have.[Via WidescreenReview]
Sony Ericsson issues second profit warning of the year, hopes to break even in Q2
Although Sony Ericsson just churned out a rather impressive array of new handsets this month, it seems the outfit is still having trouble securing record-setting profits. Truthfully, it's struggling to break even, as evidenced by the second profit warning of 2008 that was issued last week. SE is pinpointing "disappointing European sales of its mid- and high-end mobile phones" as the reason it will likely not see a profit in Q2, and some analysts are suggesting that shipment delays and a dearth of low-end handsets also carry a share of the blame. 'Course, the hotly-anticipated Xperia X1 could certainly make for a lovely Q3, but only time will tell if enough folks shell out for it to make a difference.
