Sega Sammy preparing budget and consortium for Japan IR bid

Sega Sammy Holdings President and COO Haruki Satomi revealed at a briefing on April 26 that his company was budgeting up to JPY3 billion ($27 million) in funds in the coming fiscal year for Japan IR bid preparations and would likely reveal its consortium partners before March 2020.

When approaching local governments, Sega Sammy intends to emphasize that they can handle all aspects of IR design and operations as a fully Japanese company, setting them apart from the many international IR operators that will be making bids.

Satomi made these comments in concert with the release of Sega Sammy’s FY2018 financial results.

Overall, the company’s sales were up 2.5 percent over the previous fiscal year, reaching almost JPY332 billion (about $3 billion). However, their operating profit fell by almost half to JPY13 billion (about $117 million).

The entertainment contents and resorts business both saw modest increases in revenue, while the pachinko and pachislot business continued to struggle, with net sales decreasing by 4 percent. Sega Sammy pointed to the slow rate at which the Security Communications Association (Hotsukyo) is approving new pachislot machines as a significant inhibiting factor for that segment.

Looking forward, Sega Sammy Holdings is forecasting a combined revenue growth of 17.6 percent in FY2019 at its two resorts, the Phoenix Seagaia Resort in Miyazaki and Paradise City in Incheon.