Sega Sammy April-Sept. sales fall 3.2 percent

Sega Sammy Creation - Genesis Star Cabinet

Sega Sammy Holdings says net sales in the April-September 2019 period fell 3.2 percent to JPY166 billion (about $1.5 billion).

However, operating income in the period was up 43 percent to JPY14.6 billion yen (about $135 million) on the strength of the entertainment contents segment.

In the company’s pachinko and pachislot segment, net sales were down 24.7 percent and operating income was down 18.5 percent. “The rate of pachislot machines that have been verified to be compatible through prototype testing, which was conducted by the Security Communications Association (Hotsukyo), remained low,” the company explained.

Sega Sammy’s unprofitable, but improving, resorts segment was weighed down by “an increase in expenses for entering the domestic integrated resort business.”

Regarding the Paradise City joint-venture IR in Incheon, South Korea, the report noted that it had “attracted many guests, primarily Japanese VIPs, owing to the effects of promotional activities targeting the Japanese market.”

The entertainment contents segment—including toys, animation, digital game software, packaged games, amusement machines, and amusement center operation—remained the firm’s primary financial engine.