Sega Sammy FY Ending March 2019: 3rd Quarter Results Presentation

Key insights

6 takeaways

01
The company revised its full-year operating forecast downward, citing slowdowns in its Pachislot and Pachinko machines business and in the Digital Games area.See it on page 3
02
The company recorded an impairment loss of approximately 6.1 billion yen as an extraordinary loss on fixed assets of SEGA Games Co., Ltd. and its subsidiary.See it on page 3
03
Pachislot and Pachinko full-year sales are expected at 102 billion yen and operating income at 14 billion yen, lower than planned at the start of the fiscal year.See it on page 4
04
Quarterly profit attributable to owners of the parent was 0.6 billion yen in the third quarter, after the Digital Games impairment loss was recorded as an extraordinary loss.See it on page 9
05
The full-year relocation expense forecast was revised from 7.5 billion yen to 5 billion yen, while third-quarter cumulative one-off relocation expenses totaled 4.3 billion yen.See it on page 12
06
The Digital Games area's planned new titles for the full year were revised from 12 to 9, with 3 new titles planned for the fourth quarter.See it on page 17

Summary

Sega Sammy Holdings presented its third-quarter results for the fiscal year ending March 2019 on February 6, 2019, alongside a downward revision of its full-year operating forecast announced the previous day. The company attributes the revision mainly to slowdowns in its Pachislot and Pachinko machines business and in the Digital Games area of its Entertainment Contents business. Within Pachislot and Pachinko, the company expects full-year sales of 102 billion yen and operating income of 14 billion yen, below its initial plan, because prototype-testing approvals fell short of expectations. In Digital Games, the company recorded an impairment loss of approximately 6.1 billion yen as an extraordinary loss, and it expects an operating loss in that area for the year. The third-quarter consolidated quarterly profit attributable to owners of the parent was 0.6 billion yen. Total one-off headquarters relocation expenses through the third quarter were 4.3 billion yen, and the company revised its full-year relocation expense forecast from 7.5 billion yen to 5 billion yen. The company revised the number of new titles in the Digital Games area for the year from 12 to 9.