Consolidated Financial Statements: 3 Months Ended June 30, 2016

Key insights

6 takeaways

01
Sega Sammy Holdings achieved a financial turnaround in Q1 2017, reporting 70,634 million yen in net sales—a 33.4% increase over the prior year.See it on page 1
02
The company shifted from a 9,455 million yen operating loss in Q1 2015 to an operating income of 3,055 million yen for the quarter ending June 30, 2016.See it on page 1
03
The Entertainment Contents segment was the primary profit driver, generating 46,700 million yen in net sales and 4,941 million yen in operating income, largely due to digital titles like Phantasy Star Online 2.See it on page 4
04
The Pachislot and Pachinko Machines business recovered to profitability, recording 21,239 million yen in net sales and 343 million yen in operating income following successful title launches.See it on page 3
05
The Resort business segment reported an operating loss of 898 million yen, negatively impacted by the 2016 Kumamoto Earthquake and reduced facility utilization.See it on page 4
06
Sega Sammy maintained its full-year fiscal forecast of 380,000 million yen in net sales and 20,000 million yen in operating income.See it on page 9

Summary

Sega Sammy Holdings Inc. reported a significant financial turnaround for the first quarter of the fiscal year ending March 31, 2017, compared to the same period in the previous year. The primary objective of the report is to detail the company's consolidated operating results, which reflect a return to profitability across key business segments. Net sales for the three-month period ending June 30, 2016, reached 70,634 million yen, representing a 33.4% increase over the prior year. The company recorded an operating income of 3,055 million yen, a substantial improvement from the 9,455 million yen operating loss reported in the first quarter of 2015.

Performance varied across the company’s three core segments. The Pachislot and Pachinko Machines business saw a strong recovery, with net sales rising to 21,239 million yen and an operating income of 343 million yen, driven by successful title launches. The Entertainment Contents segment also performed well, generating 46,700 million yen in net sales and 4,941 million yen in operating income, bolstered by the popularity of digital games like Phantasy Star Online 2 and strong amusement machine sales. Conversely, the Resort business faced challenges, recording an operating loss of 898 million yen due to the impact of the 2016 Kumamoto Earthquake and lower facility utilization.

The report covers the Japanese market and international operations for the three-month period ending June 30, 2016. Financial data is prepared in accordance with Japanese GAAP. The company maintained its full-year forecast, anticipating net sales of 380,000 million yen and an operating income of 20,000 million yen, while noting that future results remain subject to market trends and the ongoing integration of business segments.