Sony Cancels Dividend as Losses Spiral
Sony has cancelled its dividend payment, for the first time since the company went public in 1958.
The Japanese electronics and entertainment conglomerate confirmed there would be no dividend payments for the half- and full-year. “This is the very first time we ever eliminated a dividend,” said Sony’s president Kazuo Hirai. “For more than 50 years we always paid a dividend. The entire management takes this very seriously.”
The announcement came after Sony wrote down the value of its smartphone business, which has faced fierce competition from Chinese rivals.
The company announced a loss of 230bn yen (JPY), equivalent to US$2.1bn/£1.29bn, for the fiscal year ended in March against an earlier projection of JPY50bn. The heavier losses reflected a quarterly write-down on the mobile unit’s value of about JPY180bn.