Japan’s Sega Sammy Holdings pointed to strong sales growth and a move into profit from its recently formed gaming business, despite group-wide sales falling slightly in the three months to 30 June 2024.
The company reported Wednesday consolidated sales of JPY104.8 billion, down 3.2% year-on-year, with operating income down 15.0% to JPY19.3 billion due mainly to a decline in the entertainment or computer games segment. However, group-wide profit attributable to owners of the parent grew by 42.1% to JPY24.5 billion.
Sega Sammy noted that, as part of the company’s Medium-term Management Plan released in May 2024, it had created a new Gaming Business comprising Sega Sammy Creation which develops, manufactures, and distributes gaming machines, Paradise Sega Sammy which is a joint venture with Korea’s Paradise Co that operates the Paradise City integrated resort in Incheon, and a new iGaming arm resulting from the 2023 acquisition of GAN Limited, which operates a B2B platform business mainly for US casino operators. The company also acquired last month Netherlands-based B2B iGaming content supplier Stakelogic B.V.
According to Sega Sammy, segment sales increased across the board, with gaming equipment sales “robust” thanks to the launch of new products such as video slot machine “Railroad Riches” in the US in January, “recording high operating rates and receiving high evaluations from the market.”
At Paradise City, “casino sales have remained strong with the drop amounts of Japanese VIPs maintained at a high level,” it said.
And on its plans for the iGaming business, Sega Sammy said, “Under the New Medium-term Plan, GAN will become a gaming service provider with a comprehensive range of services by adding Stakelogic’s unique content to its own B2B platform business, which is one of its strengths.
“By combining these services with Sega Sammy Creation’s customer network, the group will create synergies and work to establish the gaming business as the company’s third business pillar.”
While the gaming segment continues to grow, Sega Sammy said its pachislot and pachinko segment saw sales and profit decline year-on-year, mainly due to the success of one its new titles in the prior year period.
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