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Sega Sammy falls to US$60 million loss in December quarter

Shintaro Kamimura by Shintaro Kamimura
Mon 15 Feb 2021 at 06:38
Sega Sammy set to “activate” Japan IR bid by March

Sega Sammy Chairman and Group CEO Hajime Satomi

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Sega Sammy Holdings announced its Q3 results for the fiscal year ending 31 March 2021 on Friday, falling to a loss net loss attributable to parent of JPY6.24 billion (US$59.5 million).

Consolidated Q3 sales were JPY210.18 billion (US$2.0 billion), a 25% year-on-year decrease, while operating profit was down 51.8% to JPY13.53 billion (US$129.0 million). Sega Sammy said it expects its net loss for the period to improve to around JPY3 billion (US$28.6 million) for the year by the end of the March quarter.

By segment, the amusement business dropped significantly, posting sales of JPY37.37 billion (US$356.3 million) – a 56.7% year-on-year decrease – and an ordinary loss of JPY8.77 billion (US$83.6 million), although the loss was reduced from JPY19.48 billion (US$185.7 million) over the same period last year.

In resorts, Phoenix Sea Gaia Resort in Miyazaki showed significant reductions due to the COVID-19 pandemic while expenses increased as a result of the company’s pursuit of an IR license in Yokohama and operations at Paradise City, the South Korean integrated resort of which it holds a 45% stake.

Sales at Paradise City were also hit hard, down 41.2% year-on-year to JPY4.89 billion (US$46.6 million), with an operating loss of JPY6.65 billion (US$63.4 million) compared to JPY3.3 billion (US$31.5 million) in 3Q20. Table drop from January to September fell 38.7% and customer traffic by 49.7%.

On the other hand, the entertainment content segment performed well with sales decreasing 10.0% year-on-year to JPY167.60 billion (US$1.60 billion) and ordinary profit increasing 106.8% to JPY33.20 billion (US$316.5 million).

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Shintaro Kamimura

Shintaro Kamimura

Shintaro Kamimura (from Tokyo) has worked for many years as a professional mahjong player, mahjong instructor and a writer. He travels far and wide both in Japan and overseas, fine-tuning his already extensive expertise in many areas of gaming, including Japanese pachinko and slot machines, and overseas casinos.

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