Sega Sammy FY Ending March 2020 1Q Results Presentation

Sega Sammy Holdings reported a positive start to the fiscal year ending March 2020, with both sales and operating income showing growth during the first quarter compared to the same period in the previous year. Sales reached 72.7 billion JPY, while operating income rose to 3.4 billion JPY. This performance was largely driven by the Entertainment Contents business, specifically strong results in the packaged games segment, which benefited from the successful launch of new titles.

The Entertainment Contents segment remains a primary growth driver, bolstered by the strong performance of titles such as Total War: THREE KINGDOMS and the ongoing success of existing digital games like Phantasy Star Online 2. Conversely, the Pachislot and Pachinko Machines business experienced a mixed quarter; while sales of previously released Pachislot titles remained steady, Pachinko machine sales saw a decline. The company is navigating a transition period in this segment, balancing the removal of older machines with the upcoming release of new, major titles, while closely monitoring regulatory approval processes for new prototypes.

The company’s broader operations include the Resort business, which saw increased sales but recorded losses due to rising expenses associated with domestic Integrated Resort development efforts. Meanwhile, the Amusement Center Operations segment maintained consistent performance, with existing store sales exceeding year-over-year benchmarks for the fifth consecutive year. Looking ahead, the company maintains a full-year sales forecast of 390 billion JPY, supported by a robust pipeline of new product launches across its packaged games, digital games, and amusement machine divisions, alongside continued efforts to optimize operational costs and resource allocation.