Sega Sammy Holdings: Summary of 1st Quarter Results for FY Ending March 2017

Sega Sammy Holdings reported a strong financial turnaround for the first quarter of the fiscal year ending March 2017, characterized by significant year-on-year growth in net sales and a return to profitability. The company achieved 70.6 billion yen in net sales and 3.0 billion yen in operating income during this period. This performance was largely driven by the Pachislot and Pachinko Machines business, which saw a substantial increase in sales due to the success of key titles, and the Entertainment Contents business, which benefited from robust digital game performance and the successful launch of new amusement machines.

The Pachislot and Pachinko segment recorded 21.2 billion yen in sales, an 116% increase compared to the same period in the previous year. This growth was fueled by strong unit sales of Pachislot titles, such as the Code Geass series, and steady performance in the Pachinko category despite a limited release schedule. Simultaneously, the Entertainment Contents business generated 46.7 billion yen in sales, supported by the record-breaking concurrent user count for Phantasy Star Online 2 and the successful introduction of the KanColle Arcade amusement machine. Packaged game software also performed well, with unit sales reaching 2.41 million, bolstered by the popularity of the Total War series.

The Resort business faced challenges during the quarter, specifically at the Phoenix Seagaia Resort, where operations were impacted by the Kumamoto Earthquake, leading to a decline in visitor numbers. However, the company remains focused on recovery efforts, including the renovation of the Sheraton Grande Ocean Resort and promotional campaigns to stimulate tourism. Overall, Sega Sammy maintains a positive outlook for the remainder of the fiscal year, with plans to leverage its core intellectual properties across digital, packaged, and amusement sectors to sustain profitability and growth.