Japanese conglomerate Sony Corp (NYSE: SNE) reported a 1% year-over-year decline in total revenues in the first quarter of 2019, hurt by weakness in its gaming and electronics businesses. Q1 revenue of approx. $17.52 billion ($1.925 trillion yen) was lower than the street projection of $18.79 billion.
Sales in the Game & Network Services unit fell 3%, primarily due to a decrease in the contribution from first-party game software like God of War last year.
Meanwhile, hurt by the decrease in unit sales of TVs and Xperia smartphones, sales in the Electronics Products & Solutions segment decreased 15% year-on-year.
The lackluster sales in these two segments have forced the company to slash its full-year sales forecast. FY 2019 sales outlook for games division was reduced to 2.2 trillion yen, compared to the April forecast of 2.3 trillion yen.
Similarly, guidance for full-year sales in the electronics segment was cut down to 2.16 trillion yen from the earlier guidance of 2.24 trillion yen.
On a consolidated basis, the company currently expects full-year total revenues of 8.6 trillion yet, much lower than the April guidance of 8.8 trillion yen.
Music and Pictures were among the better performing divisions in Q1, recording sales growth of 12% and 6% respectively.
First-quarter earnings fell 32% to approximately $1.08 (119.22 yen) per share. Excluding certain one-time items, net income would have increased 4%.
Sony shares were up 3.29% during early trading hours on Tuesday. The stock has gained 12.3% in the year-to-date period.