Fiscal Year Ending March 2023 Q1: Results Presentation

Key insights

6 takeaways

01
Sega Sammy Holdings reported 66.1 billion yen in sales and 2.7 billion yen in operating income for Q1 of the fiscal year ending March 2023, meeting internal projections.See it on page 3
02
The company has committed to a 250 billion yen growth investment strategy through fiscal year 2026, focusing on scaling consumer game development, global gaming, and corporate venture capital.See it on page 31
03
Financial performance in Q1 was supported by strong free-to-play title results and a 1.5 billion yen positive impact from foreign exchange fluctuations.See it on page 5
04
Management maintains its full-year outlook, expecting growth to accelerate in Q2 driven by major game releases and the introduction of regulatory-compliant Pachislot and Pachinko models.See it on page 20
05
The company is transitioning its gaming machine segment to prioritize the rollout of No. 6.5 and Smart models to align with updated industry standards.See it on page 21
06
Sega Sammy maintains active licensure with the Nevada Gaming Commission for its subsidiaries, Sega Sammy Creation Inc. and Sega Sammy Creation USA, Inc., requiring shareholder compliance with Nevada gaming statutes.See it on page 33

Summary

Sega Sammy Holdings achieved stable financial performance during the first quarter of the fiscal year ending March 2023, recording 66.1 billion yen in sales and 2.7 billion yen in operating income. These results aligned with internal projections, bolstered by robust performance in free-to-play titles and a favorable 1.5 billion yen impact from foreign exchange fluctuations. Although consumer repeat game sales experienced minor underperformance, the company remains committed to its full-year outlook, anticipating accelerated growth through the release of major titles in the second quarter and the introduction of new, regulatory-compliant models within the Pachislot and Pachinko segment.

The company is currently navigating a strategic transition in its gaming machine operations, prioritizing the rollout of No. 6.5 and Smart models to meet updated industry standards. Simultaneously, the resort business, particularly the Phoenix Resort, is showing signs of recovery. To sustain long-term momentum, a 250 billion yen growth investment strategy has been established through fiscal year 2026. This capital allocation focuses on scaling consumer game development, pursuing global gaming opportunities, and expanding corporate venture capital initiatives to diversify revenue streams.

Operating within a complex regulatory environment, the firm maintains active licensure through the Nevada Gaming Commission for its subsidiaries, Sega Sammy Creation Inc. and Sega Sammy Creation USA, Inc. This status mandates that shareholders adhere to specific Nevada gaming statutes and oversight. By balancing its traditional Pachislot and Pachinko business with a renewed focus on global digital gaming and resort operations, the organization is positioning itself to capitalize on both domestic regulatory shifts and international market expansion.