Sega Sammy, a leading player in the pachinko and entertainment industry, has released its financial results for the first quarter of the 2022-23 fiscal year. Despite ongoing challenges posed by the pandemic, the company experienced a year-on-year sales growth of 11.2%. However, sales remain 9% lower than pre-pandemic levels in 2019.
The strong performance in the entertainment sector, coupled with stable revenue from pachislot and pachinko machines, contributed to Sega Sammy’s positive sales figures.
Sales Breakdown:
In the first quarter ending 30 June, Sega Sammy recorded total sales of JPY66.11bn. The entertainment sector accounted for JPY52.7bn of the total sales, representing an 11.1% increase compared to the previous year. Pachislot and pachinko machines contributed JPY10.5bn, reflecting a slight year-on-year increase of 0.2%. Revenue from resorts experienced growth, reaching JPY2.6bn, an increase of JPY1.1bn. Other revenue saw a minor rise of JPY100,000, reaching JPY300,000.
Outlook and Forecast:
For the full fiscal year, Sega Sammy has forecasted sales of JPY375bn, projecting a substantial 16.8% increase compared to the previous year. The company remains optimistic about its growth prospects and aims to capitalize on market opportunities in the coming months.
Costs and Profitability:
Costs of sales for the first quarter amounted to JPY40.93bn, reflecting a year-on-year increase of 15.7% and a 7.6% rise from the same period in 2019. Despite the increase in costs, Sega Sammy achieved a gross profit of JPY25.1bn, indicating a slight growth of 4.6% compared to the previous year. However, the gross profit figure remained 11.3% lower than Q1 2019.
Operating income faced challenges due to rising selling, general, and administrative expenses, which increased from JPY20.2bn to JPY22.4bn. As a result, the operating income decreased by 27.7%, amounting to JPY2.77bn.
Financial Performance:
Non-operating income showed significant growth, totaling JPY2.52bn, significantly higher than the JPY797m recorded in the previous year. However, non-operating expenses also increased by 22.1% to JPY4.25bn. Extraordinary losses of JPY149m impacted the pre-tax income, resulting in JPY4.10bn. After deducting JPY942m in income tax, the total profit for the quarter stood at JPY3.16bn, reflecting a 7.5% increase compared to the previous year and a substantial 75.8% rise since 2019.
Sega Sammy’s financial results for the first quarter of the 2022-23 fiscal year demonstrated resilience and growth despite the ongoing challenges caused by the pandemic. The company achieved a significant increase in sales, driven by the strong performance of the entertainment sector and stable revenue from pachislot and pachinko machines. Sega Sammy remains committed to its growth strategy and is optimistic about future opportunities. The company aims to navigate the evolving landscape of the industry and continue delivering value to its stakeholders.