Gaming equipment supplier Sega Sammy Creation Inc recorded machine sales of 269 units in the three months to December 31 last year, a decline of 6.6 percent sequentially. The firm had achieved sales of 61 units in the same period a year earlier.
It now expects to achieve quarterly sales of 329 units in the three months to March 31 this year.
The information was disclosed by Japan’s Sega Sammy Holdings Inc, the parent company of Sega Sammy Creation, in its results for the nine months to December 31, reported on Friday.
Sega Sammy Holdings is also an investor in the Paradise City casino resort in South Korea, with a 45-percent stake in the project. The firm stated on Friday that it plans to put its interest in Paradise City under its wholly owned subsidiary Sega Sammy Creation, from June 2025.
The parent company also produces pachinko and pachislot products for the Japanese domestic market, as well as home entertainment.
Sega Sammy Holdings said it had decided to implement a organisational restructuring exercise of its gaming business, centralising it under Sega Sammy Creation. That was “in order to appropriately manage the strategy, financial status, risks, etcetera” of its gaming business.
Another reason was to “build a governance structure that can make quick decisions in response to changes in the environment by transitioning to a structure with Sega Sammy Creation as the core operating company.”
The move is intended to establish “a system for centralised management of gaming licences and other controls, and for collaboration among the gaming business locations scattered around the world,” according to the parent company.
A second aim is to contribute to improving the group’s “corporate value over the medium- to long-term by strengthening the international competitiveness of the business through combining the strengths of each gaming-related company and maximising segment synergies.”
Sega Sammy Holdings stated that the restructuring exercise would be “in line with the closing timing” of the acquisitions of GAN Ltd and Stakelogic BV, which are “currently underway” and expected to be completed in the quarter ending June 30 this year. The two firms would also become subsidiaries of Sega Sammy Creation.
GAN’s acquisition was announced a year ago. The company offers business-to-business (B2B) software services in the U.S. and business-to-consumer services in Europe and South America.
Stakelogic BV is a Netherlands-based company that develops business-to-business iGaming content. Its acquisition by Sega Sammy Holdings was disclosed in July 2024.
Sega Sammy Creation currently supplies gaming equipment for casinos in North America and Asia.
Sega Sammy Holdings said its gaming business – i.e. Sega Sammy Creation plus Paradise City – recorded net income of JPY954 million in the nine months ended December 31, compared to a loss of JPY116 million a year earlier.
Total net sales in the gaming segment reached almost JPY3.12 billion in the reporting period, up 208.1 percent.
Sega Sammy Holdings said factors contributing to this performance in its gaming business included “continued high operation and favourable sales of ‘Railroad Riches’, compatible with the new video slot machine cabinet ‘Genesis Atmos’.”
It added: “In Paradise City… the casino continued to maintain a high level of drop amounts… from Japanese VIP customers, and casino sales recorded the highest quarterly value” in the property’s history in the quarter ending September 30, 2024.
Hotel sales at Paradise City “also performed well, with an occupancy rate of 84.6 percent in the same quarter, the highest since its opening,” said Sega Sammy Holdings.
The parent firm posted a profit of JPY41.76 billion for the nine months ended December 31, up by 17.3 percent in year-on-year terms.
