Sega Sammy FY Ended March 2019 Full Year Results Presentation

Key insights

6 takeaways

01
Sales rose to JPY 331.6 billion, but operating income fell to JPY 13.0 billion and profit attributable to owners of parent dropped to JPY 2.6 billion from JPY 8.9 billion.See it on page 19
02
The company forecasts sales of JPY 390.0 billion and operating income of JPY 27.0 billion for the year ending March 2020.See it on page 3
03
Digital Games launched 8 new titles against an initial plan of 12, and the company said it failed to compensate for declines in existing titles.See it on page 14
04
The company cites a change in business environment from regulation changes, with approval ratio declining and sales market stagnating, for not reaching its initial Pachislot and Pachinko target.See it on page 28
05
Pachislot sales units fell to 67,140 in fiscal 2019/3 from 85,401 a year earlier, while Pachinko sales units rose to 159,848 from 140,013.See it on page 10
06
Operating income margin for the Pachislot and Pachinko machines business is forecast at 24.2% for FY 2020/3, compared to FY 2017/3 results of 17.7% and an initial target of 28.1%.See it on page 29

Summary

This is the full-year results presentation from SEGA SAMMY HOLDINGS INC., dated April 26, 2019, covering the fiscal year ended March 2019 with forecasts for the year ending March 2020. It reports consolidated figures as well as details for its Pachislot and Pachinko Machines, Entertainment Contents, and Resort businesses. Sales for the year were JPY 331.6 billion, up from JPY 323.6 billion, while operating income fell to JPY 13.0 billion from JPY 17.7 billion, and the operating income margin was 3.9% against 5.5% the prior year. Profit attributable to owners of parent was JPY 2.6 billion, compared with JPY 8.9 billion previously. The company forecasts sales of JPY 390.0 billion and operating income of JPY 27.0 billion for the following year. The presentation attributes the profit shortfall partly to the Pachislot and Pachinko business and the Digital Games area performing below expectation. It also reports that the number of new titles launched in the Digital Games area was 8 against an initial plan of 12. Within the Pachislot and Pachinko business, the company cites an impact from regulation change, with approval ratio declining.