This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Sony Looks to World Cup for Hope for a Dying Device: The TV

NEW YORK (TheStreet) -- The World Cup starts on Thursday, and it couldn't come soon enough to energize the sale of Sony's most famous product, the television.

Sony's (SNE) television unit could become profitable in the current quarter for the first time in more than a decade. That's very good news for a company that has been struggling to juggle its many parts, consumer electronics, a film studio, a music business and financial services.

Sony sales rose 30% in the first quarter to $2.15 billion. This rise in sales was spurred in part by the popularity of the Winter Olympics, and should receive a similar bounce from the World Cup, which begins June 12 in Brazil.

The uptick in TV sales marks a notable win for Sony, especially since television sales are likely to decrease over the next four years as more consumers turn to online video streaming, according to a report by Cisco.

Sony's profits are expected to be in-line with other television makers leading into the World Cup, Sandy Mehta, Principal and CIO of the Hong Kong-based consultancy, Value Investment Principals. "The entire TV food chain has seen an increase in preparation for the World Cup," Mehta said in a phone interview from Hong Kong. 

Samsung Electronics generated the highest sales this quarter with $9 billion increasing by 1% from a year earlier. The rest of the top five include LG Electronics, TCL, Sony and Hong Kong-based Skyworth Digital Holdings. Mehta disputed the notion that television sales couldn't continue to grow even with the increased popularity of streaming. 

"I don't think people are abandoning TV," Mehta said. "Sony's international market, including places like Asia, don't have the technology for video streaming in this market and will still demand TVs."

The announcement reveals some counter-intuitive results as Sony attempts to rebound from a projected sixth-loss in seven years.

CEO Kazou Hirai said at a press conference in Tokyo last month that the company's struggling TV unit can still become profitable for first time in more than a decade even if it misses a Wall Street consensus forecast for total television sales by as much as 16%. 

Mehta says the increase in television demand was due after such lengths were taken by the Minato-based company, "We were expecting an increase in sales," he said. "Management has been taking great pains to turn this around."

This success coming in the run-up to the World Cup reflects the potential growth projected for the industry by Cisco. As reported on Wednesday, Internet video to TV use by consumers will grow, increasing four-fold by 2018, Cisco said. According to the report, Internet video to TV traffic will be 14% of Internet video traffic by 2018, up from 11% in 2013.

On the day of the World Cup in Brazil, Sony shares were rising 1% to $16.15.

-Written by Kathryn Mykleseth in New York.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7870 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs