Sega Sammy FY Ending March 2019: 1st Quarter Appendix

Key insights

6 takeaways

01
Sega Sammy reported Q1 FY2019 sales of 68.8 billion JPY and an operating income of 0.9 billion JPY, impacted by 1.5 billion JPY in one-off relocation expenses.See it on page 28
02
The company maintains a full-year operating income forecast of 21.0 billion JPY, supported by strategic investments in digital gaming and packaged software.See it on page 8
03
The Japanese pachislot and pachinko business is adapting to February 2018 regulatory changes that mandate stricter payout ratios and electronic tracking by January 2021.See it on page 16
04
Foreign institutions and individuals represent the largest ownership segment of the company at 28.07%.See it on page 30
05
As of March 31, 2018, the company had 266,229,476 shares outstanding held by 80,330 shareholders.See it on page 30
06
Corporate entities and financial institutions hold a combined 36.09% of the company's total shares.See it on page 30

Summary

Sega Sammy Holdings recorded total sales of 68.8 billion JPY and an operating income of 0.9 billion JPY during the first quarter of the fiscal year ending March 2019. Financial performance during this period was notably impacted by 1.5 billion JPY in one-off relocation expenses, which affected both the Entertainment Contents and Pachislot/Pachinko business segments. Despite these initial costs, the company remains committed to a full-year operating income forecast of 21.0 billion JPY, driven by strategic investments in digital gaming and packaged software development.

The Japanese pachislot and pachinko industry is currently navigating significant regulatory shifts initiated in February 2018. These revisions aim to mitigate gambling risks by introducing multi-stage payout ratios and stricter electronic tracking requirements. While these standards mandate a transition period for existing hardware lasting until January 2021, the company is actively adjusting its operational strategy to align with these new industry requirements while simultaneously expanding gameplay variety to maintain market relevance.

As of March 31, 2018, the company maintained a stable capital structure with 266,229,476 shares outstanding distributed among 80,330 shareholders. The ownership base is characterized by a high degree of international participation, with foreign institutions and individuals constituting the largest segment at 28.07%. Other corporate entities and financial institutions hold 21.13% and 14.96% of the company, respectively, reflecting a diverse investor profile that supports the firm’s ongoing transition and long-term growth objectives within the global entertainment sector.