Sega Sammy Holdings Flash Report: Consolidated Financial Statements (3 Months Ended June 30, 2021)

Sega Sammy Holdings’ consolidated financial report for the three-month period ending June 30, 2021, details a significant recovery in financial performance compared to the same period in the previous year. The company transitioned from an operating loss of ¥3,851 million in the first quarter of 2020 to an operating income of ¥3,844 million in 2021. Net sales for the quarter reached ¥59,447 million, representing a 22.9% increase year-over-year. This growth was supported by strong performances in the Entertainment Contents segment and a substantial rebound in the Pachislot and Pachinko Machines segment.

The Entertainment Contents segment remained the primary revenue driver, generating ¥47,440 million in sales. This segment benefited from the successful launch of Phantasy Star Online 2 New Genesis and steady performance in amusement machine sales, particularly the UFO Catcher series. The Pachislot and Pachinko segment saw a dramatic 282.8% increase in sales to ¥10,361 million, as the industry continued replacing older machines with new regulation models. Conversely, the Resort business continued to face challenges due to COVID-19-related travel restrictions, though it showed signs of improvement compared to the previous year.

The company maintained its full-year forecast for the fiscal year ending March 31, 2022, projecting net sales of ¥312,000 million and an operating income of ¥20,000 million. Management noted that these projections remain subject to the ongoing impacts of the pandemic and global semiconductor shortages. The report also highlights the adoption of new accounting standards for revenue recognition and fair value measurement, which were implemented at the start of the fiscal year with immaterial impacts on current profit and loss.