Sega Sammy Holdings Consolidated Financial Results: Three Months Ended June 30, 2024

Key insights

7 takeaways

01
Sega Sammy reported a 3.2% year-over-year decline in net sales to 104.7 billion yen and a 15.0% drop in operating income to 19.3 billion yen for the quarter ending June 30, 2024.See it on page 11
02
Profit attributable to owners of the parent rose 42.1% to 24.5 billion yen, primarily driven by an 8.4 billion yen extraordinary gain from the divestiture of Phoenix Resort Co., Ltd.See it on page 11
03
The Entertainment Contents division grew 34.0% to 72.7 billion yen, bolstered by the release of 'Shin Megami Tensei V: Vengeance' and the integration of Rovio Entertainment Corporation.See it on page 4
04
The Pachislot and Pachinko Machines segment saw a 42.8% decline in sales, largely due to a difficult comparison against the previous year's performance of 'Smart Pachislot Hokuto No Ken'.See it on page 5
05
Adjusted EBITDA increased 4.6% year-over-year to 25.8 billion yen, despite the decline in operating income.See it on page 6
06
The newly established Gaming Business segment reached 686 million yen in sales and achieved positive ordinary income for the quarter.See it on page 7
07
Sega Sammy maintains its full-year forecast of 445 billion yen in net sales and 45 billion yen in operating income, focusing on transmedia strategies and iGaming expansion.See it on page 11

Summary

Sega Sammy Holdings reports its consolidated financial results for the first quarter of the fiscal year ending March 31, 2025, covering the period from April 1, 2024, to June 30, 2024. The primary objective of this disclosure is to provide transparency regarding the company’s operational performance and financial position following a strategic reorganization of its business segments. The company has transitioned to a structure comprising three core segments: Entertainment Contents, Pachislot and Pachinko Machines, and the newly established Gaming Business.

Financial performance for the quarter reflects a year-over-year decline in net sales to 104.7 billion yen, a 3.2% decrease, and operating income to 19.3 billion yen, a 15.0% decrease. These results are largely attributed to a difficult comparison against the prior year’s strong performance driven by the hit title "Smart Pachislot Hokuto No Ken." Despite the decline in top-line figures, profit attributable to owners of the parent increased by 42.1% to 24.5 billion yen, bolstered by an extraordinary income of approximately 8.4 billion yen from the divestiture of Phoenix Resort Co., Ltd. Adjusted EBITDA reached 25.8 billion yen, representing a 4.6% increase over the same period in the previous year.

Segment performance highlights include significant growth in the Entertainment Contents division, where sales rose 34.0% to 72.7 billion yen, supported by the release of "Shin Megami Tensei V: Vengeance" and the inclusion of Rovio Entertainment Corporation. Conversely, the Pachislot and Pachinko Machines segment experienced a 42.8% decline in sales due to the aforementioned year-over-year comparison. The Gaming Business, now a strategic pillar, saw sales increase to 686 million yen, with ordinary income turning positive. The company maintains its full-year forecast, anticipating net sales of 445 billion yen and operating income of 45 billion yen, while continuing to pursue growth through transmedia strategies and international expansion in the iGaming market.