CHAIRMAN AND GROUP CEO
Sega Sammy Holdings
POWER SCORE: 650
POSITION LAST YEAR: 41
CLAIMS TO FAME
- One of Japan’s biggest pachinko suppliers
- Partner in Korea’s first integrated resort, Paradise City
Despite the pachinko industry’s best efforts to remain open throughout the COVID-19 pandemic, one of its largest suppliers, Sega Sammy Holdings, has’t been immune to the crisis. The firm recorded 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) a year earlier on reduced sales across all of its 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.
Its resorts business, though smaller, has suffered a similarly seismic shake.
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). Sega Sammy pointed to an 89.2% decline in table drop and 80.5% fall in guest numbers at Paradise City for the quarter.
But the company isn’t wavering in its pursuit of a Japan IR license with Sammy Corporation founder Hajime Satomi firmly focused on the battle of Yokohama. Expect the company to throw its hat in the ring for its home base of Tokyo too should the Japanese capital city decide to join the race.
For the full list of 2020 Asian Gaming Power 50 winners, click here.
