Vodafone Reports Rare Full-Year Decline in Revenue

Revenue at Vodafone was down 4.2 percent to £44.4 billion, or $67.6 billion, for 2012, while core earnings fell 3.1 percent to £13.3 billion.

The company, based in London, said it would keep a £2.1 billion dividend payment from its American unit, Verizon Wireless, rather than returning it to shareholders. Vodafone is at the center of intense speculation as to whether it will sell its 45 percent stake in Verizon Wireless, in a deal that has been estimated at $120 billion.

‘'We have faced headwinds from a combination of continued tough economic conditions, particularly in Southern Europe and an adverse European regulatory environment,'’ Vodafone’s chief executive, Vittorio Colao, said in a statement.

Mr. Colao declined to comment on whether he would consider a sale of the Verizon Wireless stake, merely saying that he had nothing new to report.

Verizon Communications, the American company that holds the other 55 percent of Verizon Wireless, has made little secret of its wish to buy out its British partner. It has ramped up the pressure in recent months, saying that it believed it could buy the asset in a tax-efficient way.

The full-year results highlighted a problem for Mr. Colao, with Verizon Wireless growing at a rapid rate compared with assets in the core European markets that have now struggled for several years.

The steepest revenue declines came from Southern Europe, where operators are cutting prices to win business from struggling consumers. In Italy, service revenue fell 12.8 percent, while in Spain it was down 11.5 percent.

The group also took a £1.8 billion charge on its business in Italy, bringing the total write-downs for Spain and Italy for the year to £7.7 billion.

Having completed a three-year dividend program that guaranteed 7 percent growth per year, Vodafone said it now aimed at least to maintain the ordinary dividend per share at current levels.

Full-year margins on core earnings were down 0.5 percentage points to 29.9 percent, from 33.1 percent just three years ago.

‘'The situation in Southern Europe remains one of disappointment,'’ said Richard Hunter, the head of equities at Hargreaves Lansdown Stockbrokers. ‘'The question of the Verizon stake remains at the top of the agenda for investors, although Vodafone’s decision hitherto to stay put continues to reap measurable rewards, quite apart from the value of its stake appreciating by the year.'’

Sony Reports Loss and Lowers Full-Year Earnings Forecast

TOKYO (AP) — Sony’s losses worsened in the April-to-June quarter, and the company lowered its full-year earnings forecast on Thursday, citing problems caused by a strong yen and declining sales of its liquid-crystal-display products.

The Japanese electronics and entertainment company reported that it lost 24.6 billion yen ($315 million) in its fiscal first quarter, compared with a 15.5 billion yen loss a year earlier.

Sales increased 1.4 percent to 1.52 trillion yen ($19.4 billion), helped by cameras, professional broadcasting products and mobile phones.

Sony lowered its earnings forecast for its fiscal year ending in March 2013 to 20 billion yen ($256 million), down from 30 billion yen projected in May, citing uncertainty in foreign exchange rates and global demand.

The company said it was hurt in the quarter by a strong yen, which erodes overseas earnings, and by declining sales of liquid-crystal-display TVs and video game machines. It also reported 20 billion yen in income tax expense and 11.3 billion yen in restructuring charges for the quarter, and invested heavily in image sensor production.

Sony posted a loss of 456.7 billion yen ($5.84 billion) in its last business year. That was the fourth straight year of losses and the biggest loss in the 66-year history of the company, maker of PlayStation game machines, the “Spider-Man” movies and the Walkman portable audio player.

Once the stellar brand symbolizing Japan’s technological prowess, Sony has lost its shine. It is getting beaten by Samsung Electronics of South Korea in TVs, and by Apple with devices like the iPhone and iPod.

The key to Sony’s turnaround is stopping the red ink in its TV business, which has lost money for eight consecutive years. The losses are expected to continue for the current business year, and the company has yet to carve out the new areas for profit that it has long promised, like smartphones and tablet computers.

Sony is aiming for a comeback under its new president, Kazuo Hirai, chosen in February, who previously led the company’s game division and built his career in the United States.

The company said that TV sales had fallen in the latest quarter, but that operating losses in the division had been cut to less than half of what they were the year before.

In its movies division, Sony achieved a 6.2 percent increase in sales with the hit “Men in Black 3” and better cable and network program revenue. But it reported an operating loss in part because of marketing expenses for this year’s films, including “The Amazing Spider-Man.”

In music, the company had lower sales and profit partly, it said, because the overall music market shrank. Best sellers included Carrie Underwood’s “Blown Away” and Usher’s “Looking 4 Myself.”

Sony also struggled in games, with lower sales of its PlayStation Portable hand-held console and PlayStation 3 home console, as well as software for those machines. These losses were only partly offset by sales of the PlayStation Vita portable, which went on sale in December.

Sony shares, which have lost more than half of their value over the last year, gained 2.44 percent to 964 yen ($12.33) in Tokyo. Earnings were announced after the market closed.

This article has been revised to reflect the following correction:

Correction: August 4, 2012

A subheading on Friday with an article about Sony’s fiscal first-quarter earnings characterized the results incorrectly. The biggest loss in the company’s 66 years was the $5.84 billion loss for its last business year, not the loss it posted for the first quarter.

Sony Reports Loss and Lowers Full-Year Earnings Forecast

TOKYO (AP) — Sony’s losses worsened in the April-to-June quarter, and the company lowered its full-year earnings forecast on Thursday, citing problems caused by a strong yen and declining sales of its liquid-crystal-display products.

The Japanese electronics and entertainment company reported that it lost 24.6 billion yen ($315 million) in its fiscal first quarter, compared with a 15.5 billion yen loss a year earlier.

Sales increased 1.4 percent to 1.52 trillion yen ($19.4 billion), helped by cameras, professional broadcasting products and mobile phones.

Sony lowered its earnings forecast for its fiscal year ending in March 2013 to 20 billion yen ($256 million), down from 30 billion yen projected in May, citing uncertainty in foreign exchange rates and global demand.

The company said it was hurt in the quarter by a strong yen, which erodes overseas earnings, and by declining sales of liquid-crystal-display TVs and video game machines. It also reported 20 billion yen in income tax expense and 11.3 billion yen in restructuring charges for the quarter, and invested heavily in image sensor production.

Sony posted a loss of 456.7 billion yen ($5.84 billion) in its last business year. That was the fourth straight year of losses and the biggest loss in the 66-year history of the company, maker of PlayStation game machines, the “Spider-Man” movies and the Walkman portable audio player.

Once the stellar brand symbolizing Japan’s technological prowess, Sony has lost its shine. It is getting beaten by Samsung Electronics of South Korea in TVs, and by Apple with devices like the iPhone and iPod.

The key to Sony’s turnaround is stopping the red ink in its TV business, which has lost money for eight consecutive years. The losses are expected to continue for the current business year, and the company has yet to carve out the new areas for profit that it has long promised, like smartphones and tablet computers.

Sony is aiming for a comeback under its new president, Kazuo Hirai, chosen in February, who previously led the company’s game division and built his career in the United States.

The company said that TV sales had fallen in the latest quarter, but that operating losses in the division had been cut to less than half of what they were the year before.

In its movies division, Sony achieved a 6.2 percent increase in sales with the hit “Men in Black 3” and better cable and network program revenue. But it reported an operating loss in part because of marketing expenses for this year’s films, including “The Amazing Spider-Man.”

In music, the company had lower sales and profit partly, it said, because the overall music market shrank. Best sellers included Carrie Underwood’s “Blown Away” and Usher’s “Looking 4 Myself.”

Sony also struggled in games, with lower sales of its PlayStation Portable hand-held console and PlayStation 3 home console, as well as software for those machines. These losses were only partly offset by sales of the PlayStation Vita portable, which went on sale in December.

Sony shares, which have lost more than half of their value over the last year, gained 2.44 percent to 964 yen ($12.33) in Tokyo. Earnings were announced after the market closed.