Sega Sammy Sees Net Sales Decline Whilst Operating Income Rose

Sega Sammy Holdings reported its net sales at approximately 166 billion yen (around US$ 1.5 billion) in the six-month period April-September 2019, reflecting a 3.2% year-on-year decline. Operating income, however, rose 43 percent to 14.6 billion yen (around US$ 135 million).

In the pachinko and pachislot division of the business, gross sales were down 24.7% and operating income 18.5%. “The rate of pachislot machines that have been verified to be compatible through prototype testing, which was conducted by the Security Communications Association (Hotsukyo), remained low,” the company explained.

Sega Sammy’s unprofitable but expanding resort segment was weighed down by “an increase in expenses for entering the domestic integrated resort business.”

With regard to the Paradise City Joint Venture IR in Incheon, South Korea, the report noted that it had “attracted many guests, primarily Japanese VIPs, owing to the effects of promotional activities targeting the Japanese market.”

The entertainment content segment, including toys, animation, digital game software, packaged games, entertainment machines and fun centre operation, held the company’s primary financial engine