FinancialSegaSammy
Fiscal Year Ended March 2026: Results Presentation
12 May 202662 pages~50 min full read
The company swung to a ¥5.7 billion operating loss in FY2026 from a ¥48.1 billion profit in FY2025, primarily due to goodwill impairments on Rovio and Stakelogic and underperforming new game titles.
See it on page 3Total sales rose 13% to ¥487.5 billion, though net equity contracted by ¥48.7 billion as cash reserves were depleted by the acquisitions of GAN and Stakelogic.
See it on page 8Entertainment Contents operating income fell to ¥32.4 billion from ¥40.8 billion, with FY2027 recovery projections of ¥42.5 billion contingent on successful new IP launches and increased licensing revenue.
See it on page 14The company is shifting its capital allocation strategy by pausing large-scale M&A and prioritizing shareholder returns, with a 50% total-return ratio applied to projected net income for FY2027.
See it on page 26The FY2026–FY2027 investment plan totals ¥190 billion, comprising ¥80 billion for development, ¥120 billion for strategic acquisitions, and ¥70 billion for share buybacks.
See it on page 26Pachislot performance remains supported by flagship IPs like 'Hokuto No Ken,' while the company plans to introduce reel-exchangeable cabinets to capture 20% of pachislot revenue.
See it on page 19The FY2026 release schedule focuses on multi-platform titles, including a slate of global releases and a strategic alignment with the Nintendo Switch 2 launch in March 2026.
See it on page 58Fiscal year 2026 ended with a 13 % rise in sales to ¥487.5 bn, yet operating income swung from a ¥48.1 bn profit in FY2025 to a ¥5.7 bn loss, driven by significant goodwill impairments on Rovio and Stakelogic and a widening deficit in the Gaming segment. Adjusted EBITDA fell to ¥16.6 bn, reflecting heavy upfront development costs and impairment charges, while net equity contracted by ¥48.7 bn as cash balances were depleted following the acquisitions of GAN and Stakelogic.
Within Entertainment Contents, sales edged up to ¥326.6 bn from ¥321.5 bn, but operating income declined from ¥40.8 bn to ¥32.4 bn because new Full‑Game and F2P titles underperformed, despite steady growth in licensing revenue. Forecasts for FY2027 project sales of ¥357 bn and operating income of ¥42.5 bn, contingent on successful new IP launches, repeat sales, and a planned lift in licensing income. Margin erosion from title underperformance remains a key risk.
Capital allocation for FY2026/3 was restructured to focus on ¥190 bn of cumulative investment over FY2025–FY2027, allocating ¥80 bn to development, ¥120 bn to strategic acquisitions, and planning ¥70 bn in share buybacks while pausing large‑scale M&A. Shareholder returns are expected to rise sharply, with FY2026/3 projected at ¥31.5 bn (≈¥11.7 bn in dividends) and FY2027/3 potentially reaching ¥16.2 bn under a 50 % total‑return ratio applied to projected net income.
Pachislot sales showed modest growth, buoyed by new titles and strong first‑week performance of flagship IPs such as “Hokuto No Ken” and “Kabaneri of the Iron Fortress.” Pachinko sales declined as the temporary lift from Lucky Trigger 3.0 Plus faded and hall utilization softened. The group plans to introduce reel‑exchangeable cabinets, expected to account for roughly 20 % of pachislot revenue, and is positioning the gaming business for a J‑curve bottom in FY2027 through intensive lease sales and B2B platform upgrades.
The release schedule for FY2026/3 emphasizes a concentrated push of multi‑platform titles, including the Nintendo Switch 2 launch in March 2026 and a slate of global releases across consoles, PC, and mobile from late 2025 to mid‑2026. Key animation properties such as *Detective Conan* and *Lupin the Third* are slated for April–June 2025, with several new IPs and Netflix exclusives planned for early 2026. Pachislot and pachinko product launches are detailed with projected unit sales ranging from 8,000 to 49,000 units across varying gambling‑specification tiers.
