Japan’s Sega Sammy Holdings Inc reported net sales of nearly JPY201.11 billion (US$1.31 billion) in the six months to September, down 5.0 percent from the prior-year period, according to a Friday filing.
Sega Sammy Holdings is the parent of gaming equipment supplier Sega Sammy Creation Inc, and an investor in the Paradise City casino resort in South Korea.
The parent company posted a net profit of just above JPY2.75 billion in its fiscal first half, a 90.9-percent decline from a year earlier. The group declared an interim dividend of JPY27 per share.
Sega Sammy Holdings – which also makes pachinko and pachislot products for the Japanese domestic market, as well as home entertainment – said its adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) stood at JPY15.96 billion in the April to September period, compared with JPY34.81 billion a year ago.
The company’s gaming business recorded total sales of nearly JPY8.56 billion in the reporting period, up 375.0 percent year-on-year. The segment’s adjusted EBITDA were negative by JPY1.38 billion, compared with a negative figure of JPY805 million a year earlier.
The parent said in its commentary that sales of gaming equipment in the six months to September 30 this year “performed strongly”.
Machine unit sales for North America and Asia in the six months to September 30, rose 32.4 percent year-on-year, to 633 units. The number of newly installed machines in the reporting period reached 889, up from 647 a year ago.
“In particular, ‘Railroad Riches’ and ‘Super Burst’ series continued to perform well in terms of utilisation, and contributed to solid sales growth,” stated the firm.
Sega Sammy Holdings also said that during the reporting period, Stakelogic BV, a Netherlands-based company that develops business-to-business (B2B) iGaming content; and of GAN Ltd, a firm that offers B2B software services in the U.S., and business-to-consumer services in Europe and South America, were consolidated into the group following their respective acquisitions.
Following those acquisitions, “expenses related to goodwill amortisation as operating expenses and business restructuring costs as extraordinary losses have been recorded” during the reporting period, said Sega Sammy Holdings.
The company said it “plans to continue selling well-performing existing titles, primarily in the North American market”.
The group also said it was “preparing to launch new titles compatible with the newly developed slim cabinet ‘Genesis Nova’, which offers improved installation efficiency”.
The firm added: “As the first step in this roll out, ‘Railroad Riches Link’ series has already been installed.”
For Stakelogic and GAN, Sega Sammy Holdings noted it was “formulating and executing business revitalisation programmes, with the goal of expanding operations and improvingprofitability”.
Sega Sammy Holdings said it expects to achieve net sales of JPY475.00 billion for the 12 months to March 31, 2026, and annual net profit of JPY37.50 billion.
For the gaming segment, the group expects an operating loss and negative EBITDA, despite a sales forecast of JPY6.00 billion for the 12 months to March 31, 2026.
