Sega Sammy Holdings reported a sharp decline in second-quarter earnings as underperformance from its Rovio mobile games unit and delayed pachislot machine approvals dragged down results for the April-September period.
The Tokyo-based entertainment conglomerate posted net income of ¥2.75 billion ($18 million) for the six months ended September, down 91% from a year earlier. Operating profit tumbled 69% to ¥10.1 billion ($66 million) while revenue fell 5% to ¥201.1 billion ($1.31 billion).
The entertainment content division, which includes video games and Rovio’s mobile titles, saw sales rise 5% to ¥148.9 billion ($973 million), but ordinary income dropped 15% as full-game sales and Rovio operations both missed targets. The Finnish studio’s flagship Angry Birds 2 continued struggling despite the company’s efforts to reverse its decline through increased advertising spending.
Sonic Racing: CrossWorlds, released September 25, exceeded 1 million copies in global sales, providing a bright spot. The free-to-play title Persona 5: The Phantom X, which launched in June, contributed to a 27% increase in F2P revenue to ¥15.4 billion ($101 million) during the quarter.
The pachislot and pachinko machines division suffered steeper declines, with revenue plunging 35% to ¥41.9 billion ($274 million) as regulatory approval delays forced scheduling changes. Both Smart Pachislot Tokyo Revengers and e Tokyo Revengers, released during the period, outperformed internal projections despite the segment’s broader weakness.
Gaming equipment sales surged 375% to ¥8.56 billion ($56 million), driven by strong demand in North America for Railroad Riches and Super Burst slot machines. The company absorbed acquisition costs from Stakelogic and GAN purchases during the quarter, recording a ¥723 million ($4.7 million) operating loss in the segment.
The company maintained its full-year forecast of ¥475 billion ($3.1 billion) in revenue and ¥37.5 billion ($245 million) in net profit, banking on upcoming releases including Football Manager 26 and the Yakuza franchise.
