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Japan’s Sega Sammy Holdings sees profits soar in FY23 as pachinko, integrated resort segments show strength

Newsdesk by Newsdesk
Mon 1 May 2023 at 18:46
Japan’s Sega Sammy Holdings sees profits soar in FY23 as pachinko, integrated resort segments show strength
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Japan gaming conglomerate Sega Sammy Holdings has reported a 24.1% increase in profit attributable to owners of the parent of JPY45.9 billion (US$336 million) in the year ended 31 March 2023, aided by increases across its pachinko, integrated resort and entertainment contents segments.

The improved results included a 21.4% year-on-year improvement in net sales to JPY389.6 billion (US$2.85 billion), while operating income grew by 46.0% to JPY46.8 billion (US$343 million).

In its pachislot and pachinko machine segment, Sega Sammy revealed overall sales of 94,000 units in FY23 compared with 77,000 in the prior year period. This was aided by the performance of “6.5 models”, released in July 2022, with the company observing a “high level of utilization” which saw “sales units significantly exceed the business plan at the beginning of the fiscal year due to multiple additional sales.”

Net sales in the segment grew 24.2% year-on-year to JPY94.3 billion (US$690 million) with ordinary income more than doubling to JPY20.7 billion (US$228 million).

In the resort business, which includes Sega Sammy’s 45% stake in Korean integrated resort Paradise City and its local non-gaming resort Phoenix Seagaia Resort, net sales grew 33.2% year-on-year to JPY11.5 billion (US$127 million) while ordinary loss of JPY3.22 billion (US$35.5 million) was improved from an ordinary loss of JPY6.74 billion (US$74.3 million) in FY22.

The company noted a gradual recovery of casino sales at Paradise City has been seen since the easing of travel restrictions in June 2022, with “a rapid recovery of the drop amount (purchased amount of chips by customers) by Japanese VIPs seen after October 2022 [which has] surpassed the level before the spread of COVID-19.”

Sega Sammy’s dominant computer gaming, or entertainment contents segment, saw net sales grow 19.9% to JPY282.9 billion (US$3.12 billion) with an ordinary income of JPY41.2 billion (US$454 million), up 11.7% year-on-year.

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The IAG Newsdesk team comprises some of the most experienced journalists in the Asian gaming industry. Offering a broad range of expertise, their decades of combined know-how spans multiple countries across a variety of topics.

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