Japan’s Sega Sammy Holdings has reported a profit attributable to owners of the parent of JPY37.03 billion (US$286.4 million) in the 12 months to 31 March 2022, up from a profit of JPY1.27 billion (US$9.9 million) a year earlier thanks to gains in its three core business segments – pachinko, computer gaming and resort operations.
Having seen pachinko parlors across the country reopen following COVID-19 enforced closures throughout much of the 2021 financial year, Sega Sammy’s pachislot and pachinko machine business recorded the largest gains, with sales rising 42.6% year-on-year to JPY75.87 billion (US$586.6 million) and income of JPY10.28 billion (US$79.5 million) reversing a prior year loss of JPY11.22 billion (US$86.7 million). The company said this was achieved by reviewing the product line-up – including the revival of successful past products – and “improving development efficiency”.
In the Amusement Contents Business, where it develops new computer games titles, arcade machines and free-to-play online games, net sales grew 8.3% to JPY235.94 billion (US$1.82 billion) while income increased by 32.0% to JPY36.86 billion (US$285.0 million).
And in the resort segment, comprising non-gaming Phoenix Seagaia Resort in Japan plus casino resort Paradise City in Incheon, South Korea – of which Sega Sammy holds a 45% stake – net sales grew 37.1% year-on-year to JPY8.66 billion (US$67.0 million), with the resort’s loss narrowing from JPY8.98 billion (US$69.4 million) to JPY6.74 billion (US$52.1 million). The company noted that drop was up by 48.5% and the number of guests by 56.9% year-on-year, however, “travel demand has been sluggish due to the impact from the spread of COVID-19.”
Sega Sammy said it has positioned the consumer area of its Entertainment Contents Business as the most important growth area for the future and will actively invest in this area to expand its revenue on a global basis given the expected expansion of the global game market.
On its outlook for the resorts segment, the company said it expects Phoenix Seagaia Resort to return to profitability and Paradise City to further reduce its loss as COVID-19 restrictions continue to ease.