Sega Sammy Holdings posted a net loss for the year ended March 31, 2026. The loss came after large impairment charges tied to recent acquisitions.
The Japanese gaming and entertainment group reported net sales of ¥487.5 billion, up 13.7% from the previous year. Operating income fell 2.1% to ¥47.1 billion. The company posted a ¥5.76 billion loss, compared with a ¥45.1 billion profit a year earlier.
Impairments turned profit into a loss
The loss was driven by impairment charges linked to Rovio and Stakelogic. Sega Sammy recorded ¥31.99 billion in impairment losses on goodwill and other intangible assets related to Rovio, the Angry Birds developer it acquired in 2023.
The group also booked ¥18.05 billion in impairment losses related to Stakelogic, the Dutch iGaming content supplier acquired as part of Sega Sammy’s push into online gaming. Total impairment losses reached ¥54.63 billion in the year.
Sega Sammy’s results also show how recent dealmaking has changed the group’s balance sheet. Cash and deposits fell during the year, partly due to the acquisitions of GAN and Stakelogic, treasury share purchases and other spending.
Gaming sales rose, but losses increased
The Gaming segment reported higher sales after the consolidation of GAN and Stakelogic. Segment sales rose to ¥25.3 billion from ¥5.4 billion a year earlier. The segment still posted a wider operating loss of ¥7.2 billion, compared with a ¥700 million loss in the previous year. GAN contributed ¥14.5 billion in sales. It also recorded a ¥2.7 billion operating loss. Stakelogic added ¥2.2 billion in sales and a ¥1.5 billion operating loss.
Gaming machine sales remained profitable, led by video slot machines in North America. The company also recorded higher equity-method earnings from Paradise Sega Sammy, its South Korean casino resort investment.
Sega Sammy pauses large M&A after acquisition costs
Sega Sammy has reviewed its capital plan after weaker free-to-play game performance and higher working capital needs from the Gaming acquisitions. The company will suspend large-scale M&A, carry out share buybacks and review its strategic investment framework.
For FY2027, Sega Sammy expects group net sales of ¥510.0 billion and profit of ¥32.5 billion. The Gaming segment is forecast to post sales of ¥34.5 billion and a wider operating loss of ¥10.0 billion as the company keeps investing in its U.S. B2B and online gaming plans.
