Results Presentation: Q1 for the Fiscal Year Ending March 2027

Key insights

7 takeaways

01
SEGA Sammy reported a strong Q1 FY2027/3 performance, with consolidated sales of 95.0 billion yen and operating income of 2.3 billion yen, exceeding initial expectations across all business segments.See it on page 3
02
The Entertainment Contents business saw Q1 catalogue sales reach 9.7 billion yen, driven by the Persona series, with major new titles like 'STRANGER THAN HEAVEN' and 'Persona 4 Revival' scheduled for release from Q3 onward.See it on page 11
03
The Pachislot & Pachinko segment performed strongly in Q1, with notable unit sales including 10,400 units for 'Smart Pachislot BIG DREAM THE GOLDEN PUSHER' and 3,400 units for 'A-SLOT+ Isekai Quartet BT'.See it on page 17
04
The Gaming business experienced increased sales but a widened operating loss compared to Q1 FY2026/3, primarily due to the consolidation of GAN and Stakelogic into the P&L.See it on page 20
05
PARADISE CITY in South Korea reported steady performance with record-high casino drop amounts in May 2026, though equity method earnings decreased due to one-time initial hotel expenses and reduced tax refunds.See it on page 22
06
The company is preparing for a significant second-half release schedule, including the launch of 'Persona 6', 'Crazy Taxi: World Tour', and 'VIRTUA FIGHTER CROSSROADS' in the 2027 calendar year.See it on page 14
07
Adjusted EBITDA for Q1 FY2027/3 reached 7.8 billion yen, supported by 2.3 billion yen in ordinary income and 6.6 billion yen in depreciation and amortization.See it on page 5

Summary

Sega Sammy achieved a strong financial start to the fiscal year ending March 2027, with first-quarter results surpassing initial expectations across all primary business segments. This performance was underpinned by robust sales in amusement machines and favorable cost management within the consumer division, alongside positive contributions from foreign exchange fluctuations. While the company experienced a temporary decline in cash and deposits due to dividend distributions and sustained investment in content development, the overall financial position remains stable and well-capitalized to support future growth initiatives.

The company is currently navigating a transitional phase characterized by a strategic concentration of major product launches in the second half of the fiscal year. To ensure long-term profitability, management is actively executing revitalization programs for gaming subsidiaries GAN and Stakelogic. These efforts are complemented by a broader strategy to leverage popular intellectual property across the consumer, pachislot, pachinko, and gaming segments. This approach is designed to maximize market penetration and capitalize on the upcoming pipeline of gaming, animation, and hardware titles.

Geographically, the firm continues to benefit from international demand, particularly within the South Korean market, where the Paradise Sega Sammy affiliate has seen consistent growth driven by strong casino patronage from both Japanese VIPs and mass-market customers. By aligning its diverse portfolio with a heavy release schedule for the remainder of the fiscal year, the organization is positioned to maintain its momentum. The focus remains on balancing immediate operational efficiency with long-term investments in content and infrastructure to sustain its competitive standing in the global entertainment industry.