FinancialSega Sammy Holdings
Q1 for the Fiscal Year Ending March 2025 Results Presentation
1 Aug 202426 pages~25 min full read
Sega Sammy reported Q1 sales of 104.7 billion yen and an operating income of 19.3 billion yen, with net profit rising to 24.5 billion yen largely due to the 8.4 billion yen divestment of Phoenix Resort shares.
See it on page 19The Entertainment Contents segment remains the primary revenue driver at 72.5 billion yen, supported by the integration of Rovio and 5.86 million units in full-game sales.
See it on page 13Sega Sammy is aggressively expanding its North American B2B online gaming footprint through the €130 million acquisition of Stakelogic B.V. and a previously established agreement with GAN.
See it on page 4The company’s fiscal strategy includes a three-year capital allocation plan through FY2027, committing 120 billion yen to R&D and 100 billion yen to strategic investments.
See it on page 25Major revenue growth is projected for the second half of the fiscal year, driven by the upcoming launches of 'Sonic X Shadow Generations' and 'Metaphor: ReFantazio'.
See it on page 14The Pachislot and Pachinko segment generated 28.8 billion yen in Q1 and is positioned for growth with the second-quarter release of 'e Hokuto No Ken 10'.
See it on page 19Shareholder returns are prioritized through a policy maintaining at least a 3% dividend on equity (DOE) or a 50% total return ratio.
See it on page 25Sega Sammy Holdings reported a steady start to the fiscal year ending March 2025, characterized by strategic portfolio restructuring and targeted expansion into the online gaming market. For the first quarter, the company recorded sales of 104.7 billion yen and an operating income of 19.3 billion yen. While these figures represent a slight year-over-year decline in top-line revenue, profit attributable to owners of the parent rose significantly to 24.5 billion yen. This increase was primarily driven by an extraordinary income of 8.4 billion yen following the transfer of Phoenix Resort shares to Fortress Investment Group, a move intended to leverage specialized expertise in the hospitality sector while retaining a 20% voting interest.
The Entertainment Contents segment remains the primary growth engine, generating 72.5 billion yen in sales during the quarter. Performance was bolstered by favorable foreign exchange impacts and the integration of Rovio. Although full-game unit sales reached 5.86 million units—surpassing the previous year—the company expects its most significant revenue contributions to occur from the third quarter onward with the launch of major titles such as Sonic X Shadow Generations and Metaphor: ReFantazio. In the Pachislot and Pachinko segment, the company maintained a steady pace with 28.8 billion yen in sales, preparing for the second-quarter launch of the featured smart pachinko title, e Hokuto No Ken 10.
Geographically, the company is aggressively targeting the North American market. This is evidenced by the July 2024 announcement to acquire Stakelogic B.V. for an enterprise value of €130 million. This acquisition, combined with the previous GAN agreement, aims to establish a comprehensive B2B online gaming platform. Additionally, the Gaming segment saw strong U.S. performance from the Railroad Riches slot series. Looking ahead, Sega Sammy has outlined a three-year capital allocation plan through FY2027, earmarking over 120 billion yen for R&D and 100 billion yen for strategic investments, while maintaining a shareholder return policy of at least a 3% DOE or a 50% total return ratio.
