Sega Sammy Holdings Inc. announced its financial results for the first quarter ending June 2024, revealing a mixed performance. Revenue declined by 3.2% to 104,755 million yen (approximately US$737 million) compared to the previous year, primarily due to the lack of a repeat blockbuster like “Smart Slot Fist of the North Star.” Operating profit also fell by 15% to 19,341 million yen (approximately US$136 million), while ordinary profit decreased by 5.5% to 21,830 million yen (approximately US$154 million). However, net profit surged by 42.1% to 24,525 million yen (approximately US$173 million), largely driven by special profits from the transfer of Phoenix Resort shares.
In the Entertainment Contents segment, strong sales of new games such as “Shin Megami Tensei V Vengeance,” which sold over 500,000 copies shortly after release, and contributions from Rovio Entertainment boosted performance. The “Sonic” franchise also saw significant revenue growth from video-related sales.
The Pachislot segment experienced a drop in sales due to comparisons with the prior year’s successful title, but new releases like “Smart Slot Eureka Seven 4 HI-EVOLUTION” performed well. In the Gaming segment, Sega Sammy continued its expansion into the online gaming market with planned acquisitions of GAN and Stakelogic, while its “Paradise City” resort in South Korea reported strong sales from Japanese VIPs.
Sega Sammy maintained its full-year forecast, anticipating a 5.1% decline in sales to 445 billion yen (approximately US$3.1 billion) and a 22.2% drop in operating profit, while net profit is expected to increase by 18% to 39 billion yen (approximately US$274 million).
