Increased smartphone sales played a significant role in Sony Group increasing its revenue in the year to 31 March 2013.

The company said the increase in sales was “primarily due to the impact of consolidating Sony Mobile Communications as a whole-owned subsidiary” in February 2012. The group bought out former handset partner Ericsson for $1.1 billion at the beginning of last year.

Smartphone sales for the period were 8.1 million units, down from 8.7 million seen in the third quarter (it did not provide a year-on-year comparison). Total smartphone sales for the twelve months was 33 million units, up from 22.5 million the year before.

The company said its flagship Xperia Z smartphone (pictured) has enjoyed “strong consumer acceptance” since its launch in February, and forecast smartphone sales in the current fiscal year of 42 million.

It was previously reported to be aiming for 50 million smartphones in 2013.

For the fourth quarter, the recently-formed Mobile Products & Communications (MP&C) business, which includes Sony Mobile, reported sales of JPY352.8 billion ($3.75 billion), up 81 .5 per cent year-on-year. However, the division made a net operating loss of JPY24.6 billion compared to a JPY60.2 billion operating profit a year earlier.

For the 2012 fiscal year, the MP&C division generated revenue of JPY1.26 trillion, up 102 per cent. The division recorded a JPY97.2 billion loss, compared with a JPY7.2 billion profit the year before.

The company said the revenue increase was largely due to an increase in mobile phone sales and higher average sales prices “reflecting a product portfolio shift to smartphones from feature phones, and higher unit sales of smartphones”.

The loss was attributed to the inclusion of a “remeasurement gain associated with obtaining control of Sony Mobile in the previous fiscal year”, worth JPY102.3 billion. Unfavourable foreign exchange rate changes and a drop in PC sales also took their toll on the division.

For the 2013 fiscal year, the company forecast that sales for the Mobile Products & Communications division will increase significantly, largely due to “a significant increase in unit sales of smartphones and the introduction of high value-added models”.

Sony Mobile is targeting the number-three spot for smartphone sales. Speaking at Mobile World Congress in 2013, Sony Corp CEO Kazuo Hirai said 2013 will be a “breakthrough year” for its mobile business.

Sony Group’s sales and operating revenue for the fiscal year ending 31 March 2013, totalled JPY6.8 trillion, an increase of 4.7 per cent. This saw the company generate its first profit for a number of years, with a net income of JPY43 billion compared to a net loss in 2011 of JPY456.7 billion.

The final quarter of the 2012 fiscal year saw revenue rise by 8.3 per cent to JPY1.73 trillion and net income of JPY93.9 billion, compared to a JPY255.2 billion loss in the same period a year previously.