Sega Sammy Full Year Results Presentation: FY Ended March 2018

The Sega Sammy Holdings fiscal year 2018 results presentation outlines the company’s financial performance for the period ending March 31, 2018, while providing strategic forecasts for the following fiscal year. The primary objective is to communicate the impact of regulatory changes in the pachislot and pachinko sector and to detail the growth trajectory of the entertainment contents division, which encompasses digital games, packaged software, and amusement operations.

Financial results for the 2018 fiscal year show a decline in consolidated performance, with sales dropping to 323.6 billion JPY from 366.9 billion JPY in the previous year. Operating income also decreased significantly to 17.7 billion JPY, down from 29.5 billion JPY. This contraction was largely driven by a reduction in pachislot and pachinko machine unit sales, attributed to the implementation of new industry regulations. Conversely, the entertainment contents segment demonstrated resilience, bolstered by strong performance in packaged games and amusement machine sales. The company maintained a stable balance sheet, ending the period with 176.5 billion JPY in cash and cash equivalents and an improved equity ratio of 65 percent.

Looking ahead to the 2019 fiscal year, the company projects a recovery in sales to 390 billion JPY. The strategy involves a full-scale rollout of machines conforming to new regulatory standards in the second half of the year and an aggressive expansion of the digital games portfolio, with a planned increase from three to twelve new title launches. The entertainment division remains a focal point for growth, with continued investment in packaged game repeat sales and new amusement titles. Additionally, the company is managing one-off expenses related to a corporate headquarters relocation while continuing to monitor its resort business investments, including the development of the Paradise City integrated resort.