Japan gaming conglomerate Sega Sammy Holdings reported group-wide sales of JPY467.8 billion (US$3.0 billion) in the 12 months to 31 March 2024, up 20% year-on year thanks to strong growth in its pachislot and pachinko segment, as well as the recovery of its Paradise City integrated resort joint venture in South Korea.
Although profit attributable to owners of the parent fell by 28.1% to JPY33.0 billion (US$211 million), Sega Sammy said this was due to a loss from structural reform in its Europe operations and higher tax expense. It also noted that ordinary income was up 20.8% to JPY59.7 billion (US$382 million) due to pachinko and pachislot, resort and the consumer (video gaming) area across Asia.
Sales in pachinko and pachislot grew by 44.3% year-on-year to JPY135.9 billion (US$870 million) thanks to pachislot, which saw unit sales of 180,090 versus 88,236 in pachinko. Ordinary income more than doubled to JPY41.8 billion (US$268 million).
At Paradise City, a 65.9% increase in sales to KRW448.7 billion (US$328 million) helped Sega Sammy achieve a profit of KRW900 million (US$658,500) from its 45% stake in the partnership with Korea’s Paradise Co, calculated by way of equity method acquisition. The company explained that the recovery of casino sales centered on Japanese VIP customers, while hotel sales continued to achieve high room rates and occupancy by capturing the demand for stay-type travel in South Korea.
The company is forecasting a slight decline in sales in FY25 due to a decline in the pachinko and pachislot segment and the looming transfer of its controlling stake in non-gaming resort Phoenix Resort to an associate, however profit attributable to owners of the parent is tipped to climb to JPY39 billion (US$250 million).
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