Japanese pachinko manufacturer and integrated resort operator Sega Sammy Holdings Inc has reported consolidated profit of ¥11.5 billion (US$104.6 million) for the three months to 30 June 2016, representing a 180.6% year-on-year increase on the back of improved pachinko machine and video game sales.
The group saw net sales grow 51.9% to ¥107.3 billion (US$975.5 million) for the period, with operating income up 443.9% to ¥16.6 billion.
It follows a huge increase in overall sales of pachinko machines to 97,000 for the three months to 30 June 2017, up from 20,000 in 2016. Net sales for the segment rose 158.6% to ¥54.9 billion, despite pachislot sales falling from 29,000 to 25,000.
Net sales of digital games for console, mobile phone, arcade and PCs grew 7.7% to ¥50.3 billion.
However, Sega Sammy reported a 23.4% decrease in net sales in its resort business, despite the launch of its Korean integrated resort, Paradise City – a joint venture with Korean foreigner-only casino operator Paradise Co – on 20 April 2017.
Net sales for the segment, which also includes the oceanside Phoenix Seagaia Resort in Miyazaki, were ¥2.1 billion with an operating loss of ¥735 million – down from ¥898 million through 30 June 2016.
In an overview of its results, Sega Sammy said, “Significant progress has been made in operating income, ordinary income and profit attributable to owners of parent against the forecast of consolidated operating results for the fiscal year ending 31 March 2018 … mainly as a result of robust sales of mainstay titles in the pachinko machine business of the Pachislot and Pachinko Machines Business.
“During the current fiscal year, the group plans to concentrate the sales of mainstay titles in the first half of the fiscal year mainly in Pachislot and Pachinko Machines Business, and as changes to various regulations are scheduled in the second half of the fiscal year, flexible approach is required especially in the Pachislot and Pachinko Machines Business upon carefully assessing the market environment for the second half of the fiscal year.
“In the Resort Business, the group will continue to endeavor to accumulate expertise by developing and operating resort facilities as well as operating casino facilities overseas and accelerate prior investment for realizing integrated resorts business in Japan.
“Overseas, the group intends to continue to accumulate further expertise through reinforcing its dispatched personnel at Paradise City and to improve facilities utilization, by means such as promotions to attract guests mainly in Japan.”
