Japanese gaming giant Sega Sammy Holdings has revised upwards by some 50% its sales forecast for the financial year ending 31 March 2025, pointing to strong gaming machine sales in the United States and improving performance at its Korean integrated resort, Paradise City.
Releasing its financial results for the nine months to 31 December 2024, which saw sales in its Gaming Business more than triple year-on-year to JPY3.1 billion (US$21 million), Sega Sammy said it has revised upwards it FY25 forecast from a previously announced Php3.0 billion (US$20 million) to Php4.5 billion (US$30 million).
Adjusted EBITDA, currently at breakeven through the first nine months of the financial year, is now projected to come in at a JPY900 million (US$6.1 million) loss – revised down from initial forecasts of a JPY1.5 billion (US$10 million) loss.
Sega Sammy’s Gaming Business includes the results of its electronic gaming machine arm Sega Sammy Creation as well as its 45% stake in Paradise City – a joint venture with Korea’s Paradise Co. Sega Sammy earns income from the joint venture via “equity method earnings”.
In announcing its progress for the first three quarters of the year, the company cited the release of its successful slot machine title Railroad Riches for its recent success in the US market after rolling out in January 2024. Sega Sammy reported 747 unit sales as of 31 December, up from 233 a year earlier, plus 1,067 newly installed units, up from 367, and 564 leased machines, up from 291.
Railroad Riches “continued to enjoy utilization at the top level, which then resulted in steady growth in terms of number of units sold and the number of units installed for lease,” said Sega Sammy’s EVP and Managing Director of the Corporate Planning Division, Makoto Takahashi.
“With regard to gaming machine sales going forward, we launched “Super Burst – Cartin’ Gold”as a new title following Railroad Riches in the US, and it has been off to a good start. We will continue to roll out gaming machines that will be highly evaluated by the market and will also work on efforts including increasing the number of installed units, development of new customers and acquisition of new licenses.”
On Paradise City, Takahashi said the property was continuing to attract a high number of Japanese VIPs with hotel occupancy at 84.6% through Q3 and sales rising by 23% year-on-year to KRW410.2 billion (US$283 million).
“Both the number of days [playing] and the amount dropped by Japanese VIP customers remained high at the casino, and sales continued to be strong, so our equity in earnings of affiliates came to JPY2.0 billion (US$13.5 million),” Takahashi said.
Sega Sammy’s consolidated group-wide revenue came in at JPY322.3 billion (US$2.18 billion) for the nine months through 31 December 2024, down 8% year-on-year, with improvements in the Gaming and Entertainment Contents (computer games) segment offset by a decline in pachinko and pachislot.
However, Adjusted EBITDA was basically flat at JPY54.5 billion (US$368 million).
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