Pachinko Business Drags Sega Sammy Down in April-December 2018 Period

Hit hard by falling sales in the pachinko machine business, Sega Sammy Holdings recorded a 4.0% year-on-year decrease in net sales the April-December 2018 period and a steep 53.5% decline in operating income in the same period.

The company’s net sales for the nine-month period were above 250 billion yen (about US$2.3 billion) and the operating income nearly 12 billion yen (about US$109 million).

While none of the company segments entirely escaped disappointing results, sales of pachinko and pachislot machines dropped by over 20% in the period to 76 billion yen (about US$691 million), weighing down the company’s results as a whole.

Sega Sammy’s resorts business saw mixed results. The Phoenix Seagaia Resort saw significant increases in its number of visitors and net sales, but continues to generate financial losses. Paradise Segasammy in Incheon appears to be headed to modest success, but is still at an early stage. (AGB Nippon)