Sega Sammy Sees 3.2% Decline in Net Sales in April-September 2019 Period

Sega Sammy Holdings has recorded its net sales in the April-September 2019 six-month period at nearly 166 billion yen (about US$1.5 billion), which represents a 3.2% year-on-year decline.

However, operating income in the period was up 43% to 14.6 billion yen (about US$135 million).

In the company’s pachinko and pachislot segment, net sales were down 24.7% and operating income was down 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 improving, resorts segment was weighed down by “an increase in expenses for entering the domestic integrated resort business.”

Regarding 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 contents segment—including toys, animation, digital game software, packaged games, amusement machines, and amusement center operation—remained the firm’s primary financial engine. (AGB Nippon)