COMPANY TOWN : Sony Music, Film Units See Profit

Sony Corp.’s music and film businesses posted $95.2 million in operating income in the quarter ended Sept. 30, even though revenue was largely stagnant.

Sony’s results benefited from strong television performance, cost-cutting, such films as “The Net” and “Desperado,” as well as the effects of a year-earlier cleaning up of its balance sheet with a huge write-off.

A year ago, Sony’s operating loss was $423 million--largely the result of a poor performance by its movie division--with an overall loss of $3.1 billion, which stemmed from a huge $2.7-billion write-off related to its Hollywood investment.

Sony did not break down the latest operating profit by film and music, but sources familiar with the company estimated that music accounts for about 60% of the profit, with movies and TV business accounting for the 40%.

Sony’s main problem in entertainment during the quarter was the epic King Arthur film “First Knight,” which sources estimated lost about $20 million for the company. By contrast, “The Net” and “Desperado”--two lower-budget films----are each said to be in the black by about $25 million. International revenue from the film “Bad Boys” also boosted results.

Revenue for Sony’s picture group was $650.2 million in the quarter, with music’s revenue at $1.2 billion.

The music group’s sales were boosted by such albums as Mariah Carey’s “Daydream” and a greatest hits album from Michael Bolton.

Sony Corp. as a whole raised its financial forecasts, due to strong sales of audio and computer-related products.