Japan’s Sega Sammy Holdings said Friday its net profit for the April–September six-month period tumbled 91 percent from a year earlier, hit by sluggish game sales and costs tied to recent acquisitions, even as its gaming equipment business showed solid performance.
The group, known for its “Sonic the Hedgehog” franchise, posted a net profit of JPY2.75 billion ($18 million), compared with JPY30.38 billion ($198.6 million) a year earlier. Operating profit fell 69 percent to JPY10.06 billion ($65.8 million), while revenue dropped 5 percent to JPY201.1 billion ($1.31 billion).
Sega Sammy blamed the shortfall mainly on lower-than-expected sales of full games and weaker-than-forecast results at its mobile game subsidiary Rovio Entertainment, best known for “Angry Birds.” The company also cited delays in pachislot machine approvals and one-off costs related to the consolidation of newly acquired gaming firms Stakelogic B.V. and GAN Limited.
Despite the weak first-half showing, the Tokyo-based group kept its full-year forecast unchanged, expecting net profit of JPY37.5 billion ($245 million), operating income of JPY53 billion ($346 million) and sales of JPY475 billion ($3.10 billion) for the year ending March 2026.
Sales in the entertainment contents segment slipped below expectations, though licensing and downloadable content revenue held steady. Upcoming titles include Football Manager 26 and Yakuza Kiwami 3 & Dark Ties.
In the pachislot and pachinko business, the group reported solid sales of titles such as Smart Pachislot Tokyo Revengers and e Tokyo Revengers, and plans new Hokuto No Ken series machines later this year.
The gaming segment saw a 372 percent surge in sales thanks to the consolidation of Stakelogic and GAN, though the segment remained in the red due to amortization and restructuring costs.
Sega Sammy’s Paradise City casino resort in South Korea also posted record highs in casino drop amounts and hotel occupancy, led by Japanese VIP players.
Total assets stood at JPY648.1 billion ($4.24 billion) at end-September, while the equity ratio dipped slightly to 58.4 percent. The company declared an interim dividend of JPY27 ($0.18) per share, with a full-year payout of JPY55 ($0.36) per share planned.
