Sega revenues rise to $2.7bn
But profit within its Entertainment Contents segment declines due to weak game sales
Sega Sammy has released its financial report for the nine months ended December 31, 2023, and experienced a rise in overall sales and profit despite a decrease in sales for new titles.
The decline in the video games segment was offset by growth in pachislot and pachinko machines, but the company has lowered its sales forecasts for the full financial year.
The numbers:
- Net sales: ¥349.9 billion ($2.3 billion, up 28.7% year-on-year)
- Operating income: ¥54.4 billion ($364 million, up 42.4% year-on-year)
- Ordinary income: ¥57.2 billion ($383 million, up 42.7% year-on-year)
The highlights:
Sega Sammy attributed its boost in overall sales and profit to its pachislot and pachinko machines business. Net sales were up 130.3% to ¥120.2 billion ($805 million) in this segment, while ordinary income increased by 521.3% at ¥45.7 billion ($306 million).
In the Entertainment Contents segment, which includes video games, net sales were up 4.2% at ¥219.3 billion ($1.4 billion, which Sega Sammy attributed to its acquisition of Rovio last August).
However, profit decreased by 52.5% to ¥19.7 billion ($131.8 million) as a result of weak game sales.
This is despite new titles releasing over the course of the nine months ending December 2023, including Sonic Superstars, Like A Dragon Gaiden: The Man Who Erased His Name, and Persona 5 Tactica.
As a result, Sega has revised its forecast for the Entertainment Contents segment. Net sales were forecast to be ¥327 billion ($2.1 billion) in November 2023, and are now ¥313 billion ($2 billion).
In the consumer division of Entertainment Contents, net sales were ¥148.1 billion ($991 million), and operating income came to ¥13.9 billion ($93 million).
Sales of new games during this period reached 5.2 million units, down from 6.9 million during the same period last year. Catalogue titles sold 13.8 million (up from 13.7 million), with full game sales totalling 19.1 million (down from 20.7 million).
Looking ahead, Sega Sammy revised its forecast for the fiscal year. The games firm previously expected net sales of ¥474 billion ($3.1 billion), which has been revised to ¥463 billion ($3 billion). It revised its operating income to ¥51 billion ($341 million), compared to the previously anticipated ¥60 billion ($401 million).
Sign up for the GI Daily here to get the biggest news straight to your inbox