Sega Sammy’s profit plunges despite strategic growth initiatives

Sega Sammy Holdings reported net sales of 201,108 million yen for the first half of fiscal year 2026, a 5.0% decrease year-over-year. Operating income plummeted by 69.3% to 10,064 million yen, with profit attributable to owners of parent down 90.9% to 2,754 million yen. The decline was attributed to lower-than-expected Full Game sales and Rovio's performance in Entertainment Contents, and adjusted pachislot machine release schedules. The Gaming segment recorded losses due to the consolidation of newly acquired companies Stakelogic B.V. and GAN Limited.

Strategic initiatives are underway to address these challenges, including the launch of titles like "Football Manager 26" and "Yakuza Kiwami 3 & Dark Ties" in Entertainment Contents. New "Hokuto No Ken" series titles are planned for Pachislot & Pachinko Machines. The company also aims to enhance Rovio's operations and integrate new gaming machines. Total assets increased by 3,295 million yen to 648,072 million yen, primarily due to goodwill from acquisitions, while net assets decreased by 3,033 million yen to 378,571 million yen.

For the full year ending March 31, 2026, Sega Sammy maintains its forecast of net sales at 475,000 million yen and profit attributable to owners of parent at 37,500 million yen. The company targets a total return ratio of 50% or a DOE of 3% or more.