Sega Sammy Holdings Consolidated Financial Statements: 3 Months Ended June 30, 2012

Key insights

5 takeaways

01
Sega Sammy Holdings achieved a net income of 2,544 million yen for the three months ended June 30, 2012, a significant turnaround from a 2,224 million yen net loss in the prior year.See it on page 8
02
Net sales increased by 7.1% to 69,980 million yen, and operating income surged by 82.4% to 5,415 million yen compared to the same period last year.See it on page 3
03
The Pachislot and Pachinko Machines segment was the primary growth driver, with net sales up 12.8% to 33,794 million yen, while Amusement Machine Sales also grew by 9.4% to 8,966 million yen.See it on page 3
04
The Consumer Business segment continued to incur an operating loss of 1,559 million yen, though this was an improvement from the 3,856 million yen loss in the prior year, driven by a shift towards digital games and fewer packaged titles.See it on page 4
05
Sega Sammy adopted new accounting policies, including straight-line depreciation, and initiated a share buyback program to optimize capital structure, while maintaining its full-year earnings forecast.See it on page 6

Summary

Sega Sammy Holdings reported consolidated financial results for the three-month period ending June 30, 2012, reflecting a period of strategic transition and structural reform. The company achieved net sales of 69,980 million yen, representing a 7.1% increase over the same period in the previous year. Operating income rose significantly by 82.4% to 5,415 million yen, while the company transitioned from a net loss of 2,224 million yen in the prior year to a net income of 2,544 million yen.

Performance across business segments was mixed. The Pachislot and Pachinko Machines segment served as a primary growth driver, with net sales increasing 12.8% to 33,794 million yen, bolstered by strong performance in pachislot titles. The Amusement Machine Sales segment also saw growth, rising 9.4% to 8,966 million yen. Conversely, the Consumer Business segment continued to face challenges, recording an operating loss of 1,559 million yen, though this was an improvement over the 3,856 million yen loss reported in the prior year. The company attributed this segment's performance to structural reforms, including the reduction of packaged game titles and a strategic shift toward digital games for mobile and smartphone platforms.

The financial results were influenced by changes in accounting policies, specifically the adoption of the straight-line depreciation method and a revision of the useful life of property, plant, and equipment. These adjustments were implemented to better reflect the economic reality of the company’s capital investments. Additionally, the company maintained its full-year earnings forecast, citing the need for further evaluation of future sales schedules, while noting that it had initiated a share buyback program to optimize capital structure.