Japan’s Sega Sammy Holdings reported a 28.7% year-on-year increase in sales and a 7.6% increase in profit in the nine months to 31 December 2023, primarily due to the growth of its pachinko and pachislot business.
The company did, however, note ongoing improvement in its resort business, primarily via its joint venture partnership in Korean casino-resort Paradise City.
Releasing its 3Q24 results on Friday, Sega Sammy revealed that group-wide sales reached JPY349.9 billion (US$2.34 billion), of which the sale of pachinko and pachislot machines contributed JPY120.2 billion (US$805 million) – up 131% year-on-year. Segment profit grew by more than 550% to JPY45.1 billion (US$302 million) thanks to the strong performance of new titles releases throughout the period.
Sega Sammy’s resort business, which also includes non-gaming Phoenix Resort in Miyazaki, Japan, saw more subdued improvement with contributed sales up 5.7%. The company explained that the number of visitors to Phoenix Resort fell short of expectations, however Paradise City, of which it holds a 45% stake, “contributed to profit [via] equity method acquisition.”
Sega Sammy also noted that casino sales at Paradise City had almost tripled year-on-year to KRW243.4 billion (US$183 million), with the integrated resort generating a net profit of KRW33.5 billion (US$25.2 million) through December and reversing a KRW37.4 billion (US$28.1 million) loss during the prior year period.
“Recovery of casino sales progressed centered on Japanese VIP customers,” the company said, adding, “Hotel sales continued to achieve high room rates and occupancy by capturing the demand for stay type travel in South Korea.”
Sega Sammy is forecasting FY24 net sales (through 31 March) of JPY463 billion (US$3.1 billion) with profit attributable to owners of the parent of JPY28 billion (US$188 million).
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