Japanese gaming conglomerate Sega Sammy Holdings fell to a loss of JPY3.30 billion (US$31.3 million) in the three months to 30 June 2020, down from a profit of JPY1.72 billion (US$16.3 million), on reduced sales across all business segments.
Group-wide sales fell 33.5% for the period to JPY48.38 billion (US$458.3 million), with the company’s pachislot and pachinko machine business the hardest hit following the temporary closure of pachinko halls across Japan during the quarter. Opting to delay the release of new titles until the COVID-19 pandemic subsides, Sega Sammy sold just 485 pachislot units for the quarter compared with 17,930 in the prior year period, and 177 pachinko units versus 16,212 last year.
As a result, net sales in the segment decreased 84.3% to JPY2.71 billion (US$25.7 million) to record an ordinary loss of JPY8.53 billion (US$80.8 million).
In its resorts business, comprising the Paradise City IR joint venture with Paradise Co in South Korea and non-gaming Phoenix Seagaia Resort in Japan, net sales fell 81.1% to JPY464 million (US$4.4 million) with an ordinary loss of JPY2.14 billion (US$20.3 million) compared with a loss of JPY1.66 billion in the same period in 2019.
Sega Sammy pointed to an 89.2% decline in table drop and 80.5% fall in guest numbers at Paradise City for the quarter.
The one segment that did show some resilience was Entertainment Contents where consumption was positively impacted by people staying home due to COVID-19. Sega Sammy referenced strong repeat sales of existing titles which pushed total sales from 6,490 copies last year to 12,980 this time around.
However, sales in the amusement machine field were sluggish due to “decreasing charge income and order, reflecting the suspension and reduced operation of amusement centers, which are the purchasers,” the company said.
Net sales in the segment ultimately declined 15% to JPY45.13 billion (US$427.5 million) although ordinary income increased by 68.3% to JPY8.28 billion (US$78.4 million).
Of all the world’s gaming companies to have openly declared their interest in operating a Japanese integrated resort, Sega Sammy is the only one headquartered in Japan.
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