Pachinko business drags Sega Sammy down

Hit hard by falling sales in the pachinko machine business, Sega Sammy Holdings recorded a 4.0 percent year-on-year decrease in net sales the April-December 2018 period and a steep 53.5 percent decline in operating income in the same period.

The company’s net sales for the nine-month period were above JPY250 billion (about $2.3 billion) and the operating income nearly JPY12 billion (about $109 million).

While none of the company segments entirely escaped disappointing results, sales of pachinko and pachislot machines dropped by over 20 percent in the period to JPY76 billion (about $691 million), weighing down the company’s results as a whole.

Sega Sammy’s resorts business saw mixed results. The Phoenix Seagaia Resort saw significant increases in its number of visitors and net sales, but continues to generate financial losses. Paradise Sega Sammy in Incheon appears to be headed to modest success but is still at an early stage.