Thank you for waiting. We shall start the earnings announcement of Sony Group for the second quarter of fiscal 2019. I'd like to introduce our speakers today. We have Senior Executive Vice President, Chief Financial Officer Hiroki Totoki, and Senior Vice President, Senior General Manager of Finance Department and Corporate Planning and Control Department, Naomi Matsuoka, the Vice President, Senior General Manager of Global Accounting Division, Hirotoshi Korenaga. Today, Mr. Totoki will make the presentation first, and then we'll follow that with the question and answers. Mr. Totoki, you have the floor.
Today, I'd like to explain these two topics. FY 2019 second quarter consolidated sales decreased 3% year-over-year to JPY 2 trillion, 122.3 billion, primarily due to the impact of exchange rates, and operating income increased JPY 39.4 billion year-over-year to JPY 279 billion. Net income attributable to Sony Corporation stockholders increased JPY 14.9 billion year-over-year to JPY 187.9 billion. Next is the consolidated results forecast for fiscal 2019. Consolidated sales are expected to decrease JPY 200 billion compared with the previous forecast, JPY 8 trillion, 400 billion, and operating income is expected to increase to JPY 30 billion to JPY 840 billion. I will explain the breakdown of sales and operating income for each segment later. Income before income taxes was upwardly revised to JPY 800 million, and the net income attributable to Sony Corporation stockholders up to JPY 540 billion.
The forecast for operating cash flow, excluding the financial service segment, is JPY 760 billion, unchanged from the previous forecast. As for the Forex assumption for the second half, the US dollar remains unchanged from the previous forecast, 180 yen to the US dollars, and the euro changed from 123 to 111 yen to the euro. First, I will talk about Game & Network Services segment. Sales for the quarter decreased 17% to JPY 454.4 billion due to a decrease in sales of PlayStation 4 game software and the hardware, as well as the negative impact of the foreign exchange rate. Game software sales decreased because of the absence of the major first-party hit title like Marvel's Spider-Man of the previous year, and a significant year-on-year decrease in the contribution from the free-to-play games.
Operating income decreased JPY 25.6 billion year-on-year to JPY 65 billion due to the impact of the sales decline. We revised downward our FY 2019 sales forecast by JPY 200 billion to JPY 2 trillion and our operating income forecast JPY 40 billion to JPY 240 billion. As we announced last week, we have postponed the sales of the first-party title, The Last of Us Part II, from February 2020 to May 2020. As the result of this title will not contribute to the financial result of the current fiscal year. That is the primary reason for the downward revision of our operating income forecast. This slide shows the analysis of how our fiscal operating income forecast compares with that of the previous year.
The three major reasons for the decrease in expected profit year-on-year are the decrease in first-party software sales resulting from the postponement of The Last of Us Part II, and a decrease in third-party software sales due to deceleration of free-to-play titles and the negative impact of exchange rates. PS4 hardware profit increased slightly as a decrease in unit sales is offset by the hardware cost reductions. Profit from network services, mainly PS Plus, is expected to increase significantly due to the steady increase in subscribers. Since fiscal year sales are expected to decrease, we plan to constrain various costs, including marketing expenses, to a level below that of the previous year. However, operating expenses in aggregate are expected to increase due to an increase in development costs for the next-generation console, PS5.
Now, I will update you on the mid to long-term strategy in the G&NS segment and the progress of the initiatives we explained on the IR Day in May this year. First, I will discuss our efforts to strengthen the first-party content and IP. At the IR Day, we mentioned the Sony strength lies in our first-party content and IP. With the aim of strengthening these, in August, we announced the acquisition of Insomniac Games, the game developer for Marvel's Spider-Man, which sold 13.2 million units worldwide. Through this acquisition, Insomniac Games will become SIE's 14th studio and will contribute to further enhancement of our first-party software development organization. Going forward, we will continue to pursue growth investment opportunities that will enhance our own content IP. Next is a smooth transition to the next-generation console.
The other day, we announced that we will sell the PS5 from the year-end selling season of 2020. This is the most important step in strengthening the PlayStation platform. Development of the PS5 is progressing according to plan. We believe the development of game titles by our software development partners is progressing smoothly. We anticipate providing highly engaging gameplay experiences that both current users of the PS4 and potential new users have come to expect.
Sony will take
Thirdly, about our content distribution strategy. In 2014, Sony launched the pioneering cloud gaming subscription service, PlayStation Now, and to further strengthen our content distribution strategy, we announced a renewal of the service this month. PS Now has become even more attractive due to global strategic price reductions and the addition of a limited time only popular game titles such as God of War. Since starting this, the service renewal, subscribers have steadily increased, and the total number of subscribers has already exceeded 1 million as of this month. This is a great step toward a target we mentioned on the IR Day of growing subscribers by an average of more than 50% per year. Through this renewal, we are aiming to assess the potential of cloud gaming services. The impact of the renewal on the results of this fiscal year is expected to be minimal.
Lastly, let me describe the progress we're making on our cost management initiatives. Our streaming TV service, PlayStation Vue, has provided a differentiated TV viewing experience to customers in the United States since it began in 2015. However, mainly due to a diversification of viewing styles and intensification of competition among pay-TV services, we do not expect the operating environment for the business to improve going forward. As a result, we decided to terminate the service at the end of January 2020. We aim to wind down the service in a deliberate manner to minimize any inconvenience to users. The impact of the termination of this service on the result for the fiscal year is expected to be minimal and is already incorporated into our forecast. Next, the music segment. The Q2 sales increased 8% year-on-year to JPY 219.3 billion, and operating income increased 19% to JPY 37.5 billion.
This increase was mainly due to the consolidation of EMI Music Publishing in the music publishing business and higher global streaming revenues, partially offset, though, by the negative impact of exchange rates and lower sales of mobile games, mainly in Japan. Streaming revenues in the recorded music business continue to grow at a high rate, as they did in the previous quarter, increasing 17% year-on-year or 21% year-on-year if the impact of the conversion to JPY is excluded. We revised upward our full year sales forecast by JPY 20 billion to JPY 150 billion, and our operating income forecast by JPY 5 billion to now JPY 140 billion. This upward revision was mainly due to streaming revenues exceeding our expectations. Next, about Pictures Segment. The Q2 sales increased 8% from last year to JPY 260.6 billion, and operating income increased a significant 67% year-on-year to JPY 39.3 billion.
The increase in profit was mainly due to the contribution of "Spider-Man: Far From Home," which, having exceeded $1.1 billion in global box office revenue, is the highest grossing film of all time for Sony Pictures Entertainment, and an improvement in the profitability of media networks due to the benefit of portfolio review and improved profitability in India also contributed. Our fiscal 2019 full-year sales forecast has decreased JPY 50 billion to JPY 1,030 billion mainly due to a decrease in the number of titles slated for release this year due to the change in the releasing timing of some of the titles.
We have revised upward our operating income forecast by JPY 5 billion to JPY 70 billion due to an increase in the profitability of motion pictures and media networks and the benefit of the overhead cost reductions, though partially offset by the impact of lower sales. I will now discuss the collaboration between the music and picture segments in anime business. The anime market outside of Japan has been growing at a rapid rate for several years. Sony is expanding this business in this important growth area. Sony Music Entertainment (Japan) Inc. has been very successful in the anime business in Japan and has begun distributing anime content outside of Japan. Sony Pictures Entertainment acquired Funimation Productions, The Funimation, one of the largest anime distributors in the U.S. in 2017.
In order to further strengthen this area of business, we have decided to integrate the platform of the three companies within the Sony Group that distribute anime content. Funimation will acquire the distribution rights for numerous Japanese anime titles on behalf of these companies, and each company now will then distribute the titles in their market. In addition, in order to improve the appeal of the platform, Aniplex, owned by Sony Music Entertainment Japan, is joining the effort by enabling each company to distribute on a limited time exclusive basis the first animated TV series of "Fate/Grand Order," the major hit mobile game. Through these actions, we are strengthening collaboration across the Sony Group, and we are also aiming to contribute to the growth of the Japanese anime industry.
Next is the Electronics Products & Solutions. Sales for the quarter decreased 11% year-on-year to JPY 493.5 billion, mainly due to a decrease in unit sales of smartphones and TVs.
The negative impact of exchange rates. Operating income increased JPY 24.9 billion year-on-year to JPY 41.4 billion. This increase was mainly due to the benefit of the restructuring that is steadily progressing in mobile communications and reductions in operating expenses in the various businesses within the EP&S segment, partially offset by the decrease in sales and the negative impact of exchange rates. Mainly due to a reduction in the unit sales forecast for TVs, reflecting a deterioration in market conditions, our sales forecast for the full year has decreased JPY 50 billion to JPY 2,110 billion, and our operating income forecast has decreased JPY 10 billion to JPY 111 billion. Next, I will touch on the TV business. Due to a deterioration in the market for panels, the intensely competitive environment in the TV market continued in the second quarter.
Although our unit sales have decreased year-over-year, we're working to maintain our average selling price by focusing on large screen and high value-added models, as well as by tightly controlling channel inventory. Since we expect this operating environment to continue through the fiscal year ending March 31st, 2021, we plan to prioritize profitability through our supply chain and tightly manage costs. Next is the Imaging & Sensing Solutions segment. Despite the negative impact of exchange rates, the second quarter sales increased 22% year-over-year to JPY 310.7 billion, mainly resulting from an increase in unit sales of image sensors for mobile devices and improvement in product mix. Operating income increased JPY 28.5 billion to JPY 76.4 billion due to the impact of the increase in sales, partially offset by, though, an increase in research and development costs and depreciation expense.
Both sales and operating income were the highest on record for a quarter in the I&SS segment. We revised upward our full year sales forecast JPY 50 billion to JPY 1,040 billion, and our operating income forecast JPY 55 billion to JPY 200 billion. At present, we are maintaining a cautious view in our forecast for sales in the second half of the fiscal year, when demand is usually lower than the first half of the fiscal year. However, we plan to continue to operate at full capacity utilization in order to strategically stockpile inventory to meet demand next fiscal year. We expect demand for our image sensors to continue to increase from next fiscal year as well due to the adoption of multi-sensor cameras and larger size sensors by smartphone makers.
In order to respond to this strong demand, we have further improved the efficiency of space utilization in our existing factories and have raised our production capacity target for the end of March 2021 from 130,000 wafers per month to 138,000 wafers per month. Moreover, we have decided to move forward in stages with the investment we had been considering to build new fabs at our Nagasaki facility to accommodate demand from the fiscal year beginning April 1st, 2021. Through this action, we are working to continue growing the I&SS business so as to achieve the mid-range targets we established on the IR Day this year. That is 60% revenue share of the image sensor market and 20%-25% ROIC in FY 2025 ending March 31st, 2026. Next, I will explain financial services segment.
The second quarter financial service revenue increased 7% year-on-year to JPY 377.2 billion, mainly due to a higher insurance premium revenue reflecting an increase in policy amount in force, primarily from single premium insurance at Sony Life. Operating income was essentially flat year-on-year at JPY 38.8 billion. We have made no changes to our full year forecast. In conclusion, I would like to update you on our capital allocation strategy. Sony considers and implements financial measures to enhance corporate value through a balanced and consistent approach to capital allocation. Previously, we showed how we intend to allocate the operating cash flow we expect to generate during the current Mid-Range Plan.
Going forward, we will show a more comprehensive allocation of our capital, which incorporates the cash generated from the sale of equity stakes, businesses, and other assets, such as the proceeds from this quarter's sale of common shares of Olympus Corporation. Capital will be allocated in a manner designed to increase corporate value. There's no change to our policy of engaging in share repurchases in a flexible manner to increase ROE and earning per share, but we will continue to place a higher priority on M&As and organic investments, such as capital expenditures and research and development spending. Lastly, I will show you the results forecast for each of our segment. This concludes my remarks.
Now the floor is open to your questions. Those of you with questions, please wait for the microphone, and please identify yourself by stating your name and affiliation before asking your question. When the questions are asked in English, they will be interpreted into Japanese consecutively, and answers will be given in Japanese. Please confine the number of questions to two per person. Anyone? Thank you. Ono of Morgan Stanley. Two questions. First, concerning I&SS. This time, sales increased by JPY 50 billion and a profit of JPY 55 billion upward revision. About this setup, could you further expound on this? Especially after the first quarter, you did produce very good numbers, and you mentioned that about the second half, it rather uncertain. The second quarter upward revision will reflected for the second half or would you further revise that?
The second point, concerning game, the first party title release was postponed, and that has a major impact, but strategically, looking at the launch of PS5. To some extent, the first-party launch schedule going forward, would be flexibly adjusted in the course of second half of this year. The first question, concerning I&SS, the upward revision of sales and operating income, what's the setup behind? First, the sales increased by JPY 50 billion. In the main, the progress of multi-sensor camera and larger size sensors was faster and greater than we expected, so it is reflected. During the second half, we have upward revised the forecast at the beginning. The volume and the unit price with the larger size of sensors, the product mix has been improved.
We can maintain the price level more so than the beginning of the year, and that is duly reflected. About the sales volume or sales unit, as I mentioned, for the second half, we have a strong inquiry coming from the customers, as of now. At this point, we are trying to be cautious. Still upward revision compared to the forecast at the beginning of the year. About the operating income, there is an increase of the profit in the sensors, and there is a good impact of the production operation that is the cost reduction and also the profit and loss improvement due to increase of the year-end inventory. The view about the second half. For the second half of the current fiscal year, probably business situation will be stronger than what we expected at the beginning of year than the usual years.
Leading to the third quarters, in terms of business, we have a certain degree of certainty, what remains will be the price trend in the fourth quarter. Our interest is directed to the demand picture in 2020 rather than the fourth quarter this year. About the game segment. The postponement of the first party title of the launch rather than a strategic consideration. Well, the announcement was made, the timing is February, but with the further screening by the studio, the quality has not reached to the fully satisfactory level, further time is taken for the polishing up, they wanted to reschedule the timing to May. That was the decision behind this postponement. Well, on our part, the control of development schedule should be done fully. The case in time, this time, would be a trigger to have a tighter launch schedule going forward.
Next question, please. Okazaki, Nomura Securities. Thank you.
The IP strategy of the pictures segment, I have a question. Negotiation you have on Spider-Man with Disney, as you might talked about. I know that you cannot talk about specifics of this, the IP strategy of the pictures contents going forward, what is your strategy, particularly regard to new distribution done by Disney? I think there's been increase in distribution platforms in that situation. What is your view and strategy going forward? The first question, secondly, about anime, you've integrated distribution platforms, you said. I think the FGO's hit has made a significant contribution to profitability. The anime business, how has this business fared in the last few years? Even though you don't touch upon this, there is a significant synergy with the game business. Can you elaborate on the synergy between anime and game businesses?
Thank you. The IP strategy in our Pictures division. Thank you for your question.
Looking at the current competitive environment, there are different platforms enhancing their distribution operation. This competitive landscape itself is there because of the higher needs for content. That's a positive for us. Indeed, there's a lot of increasing inquiries about our content. On the other hand, because there are a lot of distribution platforms appearing, asking for quality content exclusive for themselves. This means that to keep and get the creators, the competition is getting more severe. Despite the environment, we, as an independent studio, how we can demonstrate our independence and presence, we have to strengthen IP and also better engagement, enhanced engagement with the creators, and those are the areas where we have to enhance our efforts. About the anime, animation, the business, you're right. FGO is the most powerful title currently.
While we continue to develop FGO, Aniplex will surely develop the next titles based on our IPs. They've backed on this already. There are really several titles which we can place high expectations, promising titles indeed. Whatever the games, there's a creation of TV series based on anime series. We would like to continue with these efforts as well as merchandising. Thank you.
Next question, please.
Thank you very much. From Goldman Sachs Securities, Sugiyama is my name. I have two questions, if I may. First, about games platform. Eco, okay, transition.
Transition.
Transition. PlayStation Vue, you announced the shutdown of PlayStation Vue, which will be a positive for the next fiscal year. On the other hand, PlayStation 5, the development of PlayStation 5 incurs various costs. How do you foresee this going forward? Charging of the PlayStation 4, if you could explain a little bit more about how to charge the usage of PlayStation 4, I would appreciate it. Second, sustainability of the profitability for pictures. One of the reasons for the revision this time is the "Spider-Man: Far From Home." Box office was not mentioned. Media network, cost reduction, other businesses factors contributed, you said. JPY 70 billion seems to be a little bit higher than the past. Do you think this level is sustainable or this is a high one-time event because of the good pipeline, as a result of the good pipeline? Thank you.
About the level of profit of the game platform, I'm sure you are very much interested in this. To a large extent, it depends on the price, the future price of PS5. We analyze the home cost and the acceptable price in the market and platform penetration. We analyze all these factors. In the Mid-Range Plan, we are deepening in the Mid-Range Plan on this. At this moment, I cannot go even further. I don't have anything to add. About the level of profit, well, we are very conscious of the level of profit. For investors and for the market players, we would like to keep communicating with you going forward. PS4's charging for the next fiscal year. Well, we have PS Plus and PS Now. Those are the network services. The membership is certainly increasing. Therefore, this base of the members should be leading into PS5.
Higher the base, the volatility of the profit would be mitigated more. We continue to strive forward. Now, about the pictures. The level of profit of this term. Well, Media Network, to be sure, restructuring of the Media Network contributed, yes. Improvement of profitability has been progressing steadily. As I said at the IR Day, 7% operating profit margin, that's the target I said on the IR Day. It's in line. As much as possible, Motion Pictures slates, we have to improve for several years, and we continue this. In addition, on top of that, we review the cost structure, maintain the level of profit by doing so.
Far From Home" was a big hit, for the forecast of the results this time, it was in line with the forecast that we had at the beginning of the fiscal year. The sale itself, we had the downward revision, as I said, because of the launch schedule change and the lower than expected performance of some of the titles. For the pictures now, the forecast of the profit compared to several years ago, by far margin, has more clarity and less uncertainty going forward. We would like to offer a stable forecast going forward. Thank you.
Next question. Mika Nishimura Credit Suisse. Concerning game and I&SS, one each. In game segment, in a supplemental slide, a step chart, the impact of the decline in revenue other than first party, and then you talk about free-to-play.
What was the impact of free-to-play, from first half to second half and on to the next fiscal year, how would you see the impact of this, how it would change in game business? Second point, concerning image sensors. The confirmation of the numbers during the MRP, the CapEx of JPY 700 billion. Any changes there? Also, in 138K production, what is the proportion between the internal production and outsourcing? Have you changed the ratio? The game, can you show that step chart?
Here, the game software other than the first-party production, I think you were asking about it. As you see here, we do not cite the number per se, but rather than the downward margin, the impact of free-to-play decline was larger, which means that decline was offset by the contribution from other titles.
That is our conventional partners' titles and so forth, which means there are something like free-to-play or in-game billing models titles. The basis is expanding, and it is not a bad thing in overall picture. From the second half to the next year, what is the impact? We incorporate deceleration in the first half and then downward revision for the second half. When we had a forecast at the beginning of the year, the spikes and upside of seasonality of the past have been incorporated. In actuality, there were not such spikes. It was more or less flat in that sense, which means for the second half, I think we do not have to make any further revision. This entails some uncertainties.
As I mentioned earlier, when a certain title decelerates, then we see that the customers are shifting to the other titles, and that would mitigate the fluctuation. About the CapEx of JPY 700 billion, any changes there from 2018 to 2020, for three years, JPY 700 billion was announced earlier. In view of the current demand and to respond to that, for the next MRP portion, the investment may be advanced to the tune of JPY several tens of billions. There is a possibility of increase by that margin. This also is related to the delivery of equipment, and so we cannot be certain. There is such possibility I'd like to refer to. Also, the internal production and outsourcing of 138K production. The volume of outsourcing remains unchanged, so in terms of proportion, internal production portion would increase.
Please raise your hand if you have more questions. Thank you, Ayada, J.P. Morgan Securities. I would like to ask also two questions, one of game and also another one on image sensors. Firstly, about game business. Looking at the additional information that you provided us, I'd like to ask you to elaborate your view of the business environment. Compared to last year, game software is down by JPY 14 million. "Spider-Man," the impact is there, but still that's JPY 5 million or JPY 6 million. The tie ratio is rather down significantly. I'm concerned about that. Is this just temporary phenomenon? Is there a change in the environment generally? Also, the free-to-play games, is it just a part of the title, some of the titles declining significantly, or it's a more broad decline for these titles in general? Secondly, about the I&SS, you're going to increase your capacity for production.
Compared to the previous situation, beyond 2021, looking at the applications, is it going to be smartphones, or automobile, or IoT, or AI? Which application is likely to increase more beyond 2021? Can you give us your view? As this happens, your previous plan about ROIC between 20% and 25%, do you think it's going to be more upside, more positive change, or is it going to be rather difficult? Thank you. The software decline compared to last year. Last fiscal year, Spider-Man was there. God of War also. Very strong titles were there last year. That difference is very significant, rather. Therefore, in total, are we seeing a shrinkage in the software market? No, that's not our view. That's the first point. Secondly, the free-to-play from third parties, there is a concentration.
In other words, it's not a multiple title, it's just a few of concentrated titles performing. About I&SS capacity increase, what is our view? In essence, for 2020 or 2021, I think it's going to be smartphones. Smartphone demands will still be strong because of multi-sensor cameras increasing and larger size sensors being used. The increase is rather significant there. Demand from customers for our I&SS will continue to be very strong. This means that other applications are not going to be visibly significant in terms of their percentage in our total revenue.
Next question, please. Thank you. SMBC Nikko Securities. Katsura is my name. I have questions about I&SS and capital allocation. First, about I&SS. Capacity expansion, the actual progress in the second quarter, and any forecast going forward on Q3. For the second half outlook, what you mentioned briefly on that is to say, you're going to have the full capacity utilization. What's your view on the level of inventory on Q4? On page six of the annex, this is an inventory situation displayed there. Compared to last year, what's your take this year, number of days or the absolute level? What is the assumption you used for the forecast? Second quarter's I&SS and upward revision, and full year upward revision was so large. First, about capacity. For the wafers, Korenaga-san will answer.
For capacity, as of the end of Q2, capacity was 108,000, 108K. The previous time was 105K, a small increase was there. As of the end of the third quarter, at this moment, 117K. That is what we expect. After three months, gradually, we are going to increase the capacity for the input. When the Q2 was based on the full capacity utilization, the same thing with the third quarter. About the inventory, this is strategic inventory, as we call it. The assumption is that in the second half, among the production, in terms of wafers, 50,000 wafers, that's the strategic inventory we plan for the second half. In the second half, at this moment, it seems the demand remains strong. Whether we can accumulate the inventory to that level or not, it's difficult to foresee.
My second question, capital allocation. Going forward, the sales of businesses and other assets and investments are expected here.
190 billion of sales. These numbers incorporated already what has been achieved or in the second half, to a certain extent, there are certain things that you expect, and you factored them in as well in coming up with these numbers. Our basic idea, whatever we sell, it's difficult to show you the plan, so we focus on what we have done. About strategic investment, deals are done, but execution is yet to come, and we include them as well. Basically, this is how we display our situation.
Thank you.
Next question. Yes. Yasuo Nakane of Mizuho Securities. First, one point. Concerning mobile, this time, the second quarter surplus and for full year increased by JPY 10 billion. Why the unit number decline? For the next fiscal year, what is the likely of improvement of the surplus? The domestic market plus alpha would be the forecast. The cost reduction is going well immediately. What is the background and the forecast? In terms of business, if you could make a strategic update and talk about upside. The balance between first half and second half, that is very difficult to see at the first glance, I'd like to talk about the substance of the first half and second half. For the first half, there are one-time factors which affected the result upside, pushing up the profits.
Whereas for the second half, we have one-time expense giving a downward pressure. Excluding the one-time factors and compare the second half to the first half, the sales increased by 13.2% and the operating profit, JPY 8 billion. The increase of sales at JPY 23 billion. That reflects the current basic strengths. Compared to the initial forecast, how the restructuring progressed, the restructuring is progressing earlier than the plan. In terms of break-even point, it would be lower than initial expectation. Our conclusion is that as we have been saying in the past, for a positive turnaround in next fiscal year, we should be able to achieve that. About sales units, the number is domestic sales plus alpha, and whether we can make a positive turnaround or not is the issue. My current view is that they should be achievable.
You talk about upside possibilities. For the time being, the form factors of the smartphones and to pursue a upside over a short period of time would entail too much business risks and rather difficult. Therefore, we would like to make our operations slim and strong and muscular and to look at our very basics in our strategy.
We passed our time to conclude, the next one will have to be the last question. If there's a question.
Thank you. [Sakai], Daiwa. I just have one question about Electronics Products & Solutions. Other than smartphones, TV, audio, video, also video cameras, what's the trend-wise results on a Y-o-Y basis, profit increase or declines? EP&S, other than smartphone products.
I'd like to indicate to you sort of a direction in terms of the profitability. For TV, as far as TV is concerned, both top line and bottom lines are down. Revenues and profits are down. I think you're asking about second quarter. Yes. As far as the audio, video is concerned, both top line and bottom lines are up. Also the digital imaging, DI, the profits are down, the revenues is up. Professional solutions, the revenues are down, and profits also are down. If I may give you some narrative description of the situation. For TV, the unit sales are down. Also, we are impacted by forex situation. For audio, video, particularly audio business, true wireless headsets have done very well in sales, so that contributed significantly to the increase in revenues.
Digital imaging, there's a negative impact on forex situation, but there's impact of the new product introduction. That's why the revenue is up. For professional solutions, unfortunately, it's a negative impact of forex and also deterioration in Chinese market. The two factors affected us so that both top line and bottom lines are down. The projectors business and camcorders faced very much of a difficulty.
Thank you. With that, we'll conclude our earnings announcement session today. Thank you for your participation.