Results Presentation: Q3 Fiscal Year Ending March 2026

The company’s Q3 fiscal year ending March 2026 fell short of its initial forecast, primarily due to weaker entertainment‑content sales and a substantial goodwill impairment of approximately 31.3 billion yen following the Rovio acquisition. Operating income reached 43.7 billion yen versus a forecast of 48.1 billion yen, while adjusted EBITDA for the full year was revised upward to 62.2 billion yen after accounting for M&A effects and impairment losses. The balance sheet reflected a 6.6 billion‑yen increase in goodwill and a 39.9 billion‑yen decline in shareholders’ equity, driven by the impairment and a treasury‑stock buyback.

Entertainment‑content sales underperformed across most segments, with the Consumer area’s full‑game and new free‑to‑play titles falling short of expectations. Animation sales, however, exceeded forecasts, and licensing revenue alongside subscription services in the Consumer segment are projected to grow year‑over‑year. The company highlighted strong character licensing and a steady animation business but noted sluggish results for Rovio and the need to boost holiday‑period sales.

The Gaming Business continued to build a foundation for growth, launching new titles such as “Railroad RICHES Link™” and “Super Burst Boosted Cartin’ Gold™.” Casino sales hit a record high, driven by Japanese VIP and mass‑market customers, yet the group anticipates roughly 15 billion yen in impairment losses from Stakelogic and is restructuring management and product development to improve profitability. Focus remains on B2B omnichannel expansion in online gaming and social casino markets while tightening capital allocation for new IP development.

Looking ahead, the next fiscal year will concentrate on expanding SEGA Sammy’s core entertainment portfolio with four major IP releases, enhancing sales capabilities for content titles, and launching a full‑scale B2B online gaming platform. In the pachislot/pachinko segment, new cabinet models featuring flagship IPs will roll out through Q3‑Q4 2026. The animation arm plans several high‑profile releases, including new “Detective Conan” and “Lupin the Third” projects, with a mix of global launches and Netflix exclusives to diversify revenue streams.