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Sega Gaming Business Surges on Entertainment Success Despite Overall Revenue Dip

Entertainment division's consumer game sales offset pachislot decline as company maintains annual forecast
Japan
s 6460.TSE Anime 20 Mid and Small Cap 2000 Games 75 Tech 350 Entertainment 100
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The Japanese gaming giant saw revenue decline 4.5% to ¥211.6 billion ($1.4 billion) compared to the same period last year. Operating profit fell 18.1% to ¥32.8 billion, while ordinary income dropped 21.4% to ¥33 billion.

However, net profit surged 31.1% to ¥30.3 billion, boosted by extraordinary gains including the sale of Phoenix Resort Co.

The company’s Entertainment Contents division was a bright spot, with revenue climbing 16.4% to ¥141.7 billion on strong performance of consumer games and animation content. Notable successes included “Metaphor: ReFantazio” and “Sonic X Shadow Generations,” which each surpassed 1 million units sold on their first day of release.

The Pachislot and Pachinko segment saw revenues fall 30.1% to ¥64.7 billion, though the company’s first smart pachinko title “e Hokuto No Ken” performed well with 35,000 units sold.

In the Gaming Business, which includes casino gaming machines, sales nearly tripled to ¥1.8 billion as the company’s “Railroad Riches” slot machine showed strong performance in North American casinos.

Looking ahead, Sega Sammy maintained its full-year forecast with expected revenue of ¥445 billion and operating profit of ¥45 billion. The company plans to focus on launching new major titles and expanding its transmedia strategy, particularly around the Sonic franchise ahead of the December release of “Sonic the Hedgehog 3” movie.

The company declared an interim dividend of ¥25 per share, maintaining its full-year dividend forecast of ¥50 per share.

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