Sega Sammy Holdings: Consolidated Financial Results for the Three Months Ended June 30, 2025

Key insights

6 takeaways

01
Sega Sammy reported a net loss of 3,387 million yen for the quarter ending June 30, 2025, a significant reversal from the 24,525 million yen profit recorded in the same period last year.See it on page 11
02
Consolidated net sales fell 22.7% year-over-year to 81,026 million yen, driven primarily by a 61.7% decline in the Pachislot and Pachinko segment due to a limited release schedule.See it on page 14
03
The Entertainment Contents segment remains the company's core revenue driver, generating 67,870 million yen behind the launch of 'Persona5: The Phantom X' and ongoing 'Sonic' film royalties.See it on page 4
04
Management has maintained its full-year forecast for the fiscal year ending March 31, 2026, projecting 475,000 million yen in net sales and 53,000 million yen in operating income despite the Q1 loss.See it on page 8
05
The Gaming Business segment grew 98% to 1,358 million yen, supported by North American equipment sales and stable operations at the Paradise City casino in South Korea.See it on page 5
06
Strategic acquisitions of Stakelogic B.V. and GAN Limited to expand into iGaming resulted in 35,992 million yen of newly recorded goodwill on the balance sheet.See it on page 15

Summary

Sega Sammy Holdings reported consolidated financial results for the first quarter of the fiscal year ending March 31, 2026, covering the period from April 1, 2025, to June 30, 2025. The company recorded net sales of 81,026 million yen, representing a 22.7% decline compared to the same period in the previous year. The group reported an operating loss of 519 million yen and a net loss attributable to owners of the parent of 3,387 million yen, a significant downturn from the 24,525 million yen profit recorded in the first quarter of the prior year.

Performance across business segments was mixed. The Entertainment Contents segment remained the primary revenue driver with 67,870 million yen in net sales, supported by the global launch of the free-to-play title Persona5: The Phantom X and ongoing royalty income from the Sonic film series. Conversely, the Pachislot and Pachinko Machines segment experienced a sharp decline, with net sales falling 61.7% to 11,076 million yen due to a limited release schedule. The Gaming Business segment saw a 98% increase in net sales to 1,358 million yen, bolstered by strong performance in North American equipment sales and stable casino operations at Paradise City in South Korea.

The company’s financial position reflects recent strategic M&A activity, specifically the acquisition of Stakelogic B.V. and GAN Limited to expand its footprint in the online gaming and iGaming platform sectors. These acquisitions contributed to an increase in noncurrent assets, including 35,992 million yen in newly recorded goodwill. Despite the quarterly losses, management has maintained its full-year consolidated forecast, projecting net sales of 475,000 million yen and an operating income of 53,000 million yen for the fiscal year ending March 31, 2026.