Sega Sammy reports 90.9% drop in half-year net profit

The group consolidated the Netherlands-based B2B igaming content developer Stakelogic BV and services provider GAN.

Japan.- Sega Sammy Holdings Inc, the parent company of gaming equipment supplier Sega Sammy Creation Inc, has published its financial report for the six months ending September 30. Net sales were JPY201.11bn (US$1.31bn), a decline of 5 per cent compared to the same quarter in the previous year.

Net profit fell 90.9 per cent year-on-year to JPY2.75bn (US$17.8m). Adjusted EBITDA reached JPY15.96bn (US$103.1m), down from JPY34.81bn (US$225.8m).

According to Sega Sammy, its gaming business generated sales of JPY8.56bn (US$55.5m) from April to September. The segment reported an adjusted EBITDA loss of JPY1.38bn (US$8.9m), widening from a loss of JPY805m (US$5.2m) in the same period last year. In North America and Asia, machine unit sales increased 32.4 per cent year-on-year to 633 units. New installations rose from 647 a year earlier to 889.

During the period, the group consolidated the Netherlands-based B2B igaming content developer Stakelogic BV and services provider GAN. These acquisitions led to goodwill amortisation being recorded as operating expenses and business restructuring costs being recorded as extraordinary losses.

On future plans, Sega Sammy noted that it intends to keep selling well-performing titles, primarily in North America, while also gearing up to launch new titles optimised for its Genesis Nova slim cabinet. The group expects to reach net sales of JPY475bn (US$3bn) and annual net profit of JPY37.50bn for the fiscal year ending March 31, 2026. It projects JPY6bn (US$38.9m) in sales for the gaming segment for the period, but expects an operating loss and negative EBITDA.

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The group consolidated the Netherlands-based B2B igaming content developer Stakelogic BV and services provider GAN. Japan.- Sega Sammy Holdings Inc, the parent company of gaming equipment supplier Sega Sammy Creation…