Sega Sammy Holdings Consolidated Financial Statements: 9 Months Ended December 31, 2013

Key insights

7 takeaways

01
Sega Sammy Holdings achieved a 46.8% increase in net sales to 303,961 million yen and a 558.4% surge in operating income to 46,574 million yen for the nine months ending December 31, 2013.See it on page 7
02
The pachislot and pachinko segment served as the primary growth driver, generating 160,364 million yen in net sales and 50,045 million yen in operating income through the sale of 286,000 pachislot and 156,000 pachinko units.See it on page 9
03
Net income rose significantly to 44,329 million yen, up from 3,067 million yen in the prior year, aided by gains from the sale of investment securities and noncurrent assets.See it on page 1
04
The consumer business segment saw a decline in packaged game software sales, but offset this with strong performance in digital titles including Phantasy Star Online 2, Puyopuyo!! Quest, and Chain Chronicle.See it on page 4
05
Amusement machine sales and amusement center operations segments both recorded operating losses due to a stagnant market and a lack of major industry-driving titles.See it on page 3
06
The company maintains a stable financial position with total assets of 575,520 million yen and an equity ratio of 61.5% as of December 31, 2013.See it on page 1
07
Management has maintained its full-year forecast of 485,000 million yen in net sales and 73,000 million yen in operating income, with a strategic focus on expanding the digital game sector.See it on page 4

Summary

Sega Sammy Holdings experienced significant financial growth during the nine-month period ending December 31, 2013, driven primarily by a robust performance in the pachislot and pachinko machine sector. Net sales reached 303,961 million yen, representing a 46.8% increase compared to the same period in the previous fiscal year. Operating income surged by 558.4% to 46,574 million yen, while net income rose to 44,329 million yen, up from 3,067 million yen in the prior year. This financial improvement was bolstered by gains from the sale of investment securities and noncurrent assets, despite challenges in other business segments.

The pachislot and pachinko segment served as the primary growth engine, with net sales of 160,364 million yen and operating income of 50,045 million yen. Sales volumes reached 286,000 pachislot units and 156,000 pachinko units, exceeding results from the previous year. Conversely, the amusement machine sales and amusement center operations segments faced difficulties, both recording operating losses due to a stagnant market environment and a lack of major industry-driving titles. The consumer business segment showed mixed results; while packaged game software sales declined, the digital game sector performed favorably, particularly with titles such as Phantasy Star Online 2, Puyopuyo!! Quest, and Chain Chronicle.

The company maintains a stable financial position with total assets of 575,520 million yen and an equity ratio of 61.5% as of December 31, 2013. Management has not revised its full-year forecast, which anticipates net sales of 485,000 million yen and operating income of 73,000 million yen. Future strategy focuses on concentrating resources within the digital game field and reinforcing management capabilities across amusement center operations to navigate ongoing market uncertainties.