Sega Sammy Holdings President and COO Haruki Satomi revealed at a briefing on April 26 that his company was budgeting up to 3 billion yen (about US$27 million) in funds in the coming fiscal year for Japan IR bid preparations and would likely reveal its consortium partners before March 2020.
When approaching local governments, Sega Sammy intends to emphasize that they can handle all aspects of IR design and operations as a fully Japanese company, setting them apart from the many international IR operators that will be making bids.
Satomi made these comments in concert with the release of Sega Sammy’s FY2018 financial results.
Overall, the company’s sales were up 2.5% over the previous fiscal year, reaching almost 332 billion yen (about US$3 billion). However, their operating profit fell by almost half to 13 billion yen (about US$117 million).
The entertainment contents and resorts business both saw modest increases in revenue, while the pachinko and pachislot business continued to struggle, with net sales decreasing by 4%. Sega Sammy pointed to the slow rate at which the Security Communications Association (Hotsukyo) is approving new pachislot machines as a significant inhibiting factor for that segment.
Looking forward, Sega Sammy Holdings is forecasting a combined revenue growth of 17.6% in FY2019 at its two resorts, the Phoenix Seagaia Resort in Miyazaki and Paradise City in Incheon. (AGB Nippon)