Sega Sammy Business Report: 2006

Sega Sammy Holdings achieved significant financial growth during the 2006 fiscal year, marking a successful period of integration following the merger of its core entities. Consolidated net sales rose by 7.3 percent to 553,240 million yen, while net income surged by 30.9 percent to 66,221 million yen. This robust performance was underpinned by the return of the consumer business segment to profitability and the sustained popularity of children’s card games such as MUSHIKING. The company’s financial position remained stable, verified by independent audits from KPMG AZSA & Co., despite the adoption of new accounting standards for fixed asset impairment that necessitated a 7,194 million yen reduction in income before taxes.

Strategic expansion remained a primary focus throughout the year, characterized by aggressive mergers and acquisitions, including the integration of TMS Entertainment and Ginza Corporation. These moves were designed to solidify market leadership in the pachislot and pachinko sectors while simultaneously broadening the company’s reach into the global home software market through the acquisition of studios like Sports Interactive. Organizational restructuring, including the adoption of an executive officer system and centralized financial management, served to enhance development efficiency and improve overall corporate governance.

The company’s operational scope encompassed a diverse range of industry segments, including amusement facilities, home entertainment software, and gaming machine manufacturing. Beyond financial growth, management prioritized operational safety and investor relations, implementing new protocols for amusement facilities and streamlining administrative procedures for shareholders. By focusing on organizational reforms and international competitiveness, the group established a foundation for long-term stability within the Japanese and global gaming markets during this pivotal second year of operation.