ReportSega Sammy Holdings
Sega Sammy Holdings Integrated Report 2025
1 Oct 202580 pages~449 min full read
Sega Sammy is restructuring into a three-pillar business model comprising Entertainment Contents, Pachislot & Pachinko, and a new Gaming Business to reduce reliance on volatile domestic markets.
The Entertainment Contents segment generated ¥321.5 billion of the Group's ¥428.9 billion total FY2025 net sales, driven by a transmedia strategy utilizing IPs like Sonic, Persona, and Like a Dragon.
The company is aggressively entering the North American iGaming and B2B casino markets through over ¥130 billion in acquisitions, including Rovio, GAN, and Stakelogic.
The Group reported a robust FY2025 financial performance with a profit of ¥45.1 billion and an ROE of 12.2%.
Management has set a target of over ¥230 billion in cumulative adjusted EBITDA by FY2027, supported by a 50% total return ratio and a 3% dividend on equity.
The Pachislot & Pachinko segment is being repositioned as a stable cash generator, utilizing new modular cabinet systems to mitigate the impact of a shrinking domestic market.
Strategic divestment of non-core assets, such as the Phoenix Seagaia Resort, is being used to fund the company's long-term growth plan through 2030.
Sega Sammy Holdings’ 2025 Integrated Report details a transformative strategic shift aimed at establishing a more balanced and resilient business portfolio. Historically reliant on the volatile Pachislot & Pachinko market, the Group is transitioning to a three-pillar structure: Entertainment Contents, Pachislot & Pachinko, and a newly formed Gaming Business. This "Welcome to the Next Level!" plan focuses on global expansion and transmedia integration to drive long-term growth through 2030.
The Entertainment Contents segment remains the primary revenue driver, contributing ¥321.5 billion of the Group’s ¥428.9 billion in FY2025 net sales. This growth is fueled by a "mille-feuille" revenue model that leverages major intellectual properties like *Sonic the Hedgehog*, *Persona*, and *Like a Dragon* across games, film, and licensing. Meanwhile, the Pachislot & Pachinko segment is being repositioned as a stable cash generator. To combat a shrinking domestic market, the Group is introducing innovative modular cabinet systems to reduce costs for operators and improve player engagement.
The most significant strategic development is the establishment of the Gaming Business as a third pillar, targeting the North American iGaming and B2B casino solutions markets. This expansion is underpinned by the major acquisitions of Rovio, GAN, and Stakelogic, totaling over ¥130 billion, alongside the divestment of non-core assets like the Phoenix Seagaia Resort. Financially, the Group reported a robust FY2025 performance with a profit of ¥45.1 billion and an ROE of 12.2%. Looking ahead, the Group targets a cumulative adjusted EBITDA of over ¥230 billion by FY2027, supported by a commitment to shareholder returns including a 50% total return ratio and a 3% dividend on equity. Sustainability and governance also remain central, with goals for carbon neutrality by 2050 and enhanced diversity within its global workforce.
