Sega's half-year results driven by 22% rise in games revenue

Sega published its financial results for the six months ended September 30, 2024, with sales across the wider company down year-on year, but games driving good H1 FY25 results for its entertainment segment.

The numbers

• Net sales: ¥211.6 billion ($1.39 billion), down 4.5% year-on-year
• Entertainment Contents net sales (including games): ¥141.7 billion ($931 million), 16.4% increase year-on-year
• Games segment sales: ¥95.6 billion ($628 million), up 22% year-on-year

The highlights

Games sales have driven positive half-year results for Sega's Entertainment Contents segment. Sales across that vertical were up 16.4% and games sales (which Sega calls its 'Consumer' business) were up 22% year-on-year.

This was due to DLC sales exceeding expectations, the report pointed out, and repeat sales being "strong," with Unicorn Overlord in particular being highlighted. Sega also noted that "recording of Rovio sales contributed [to] sales increase."

It added that there was a positive impact from exchange rate fluctuations, and that "cost improvement mainly in Europe exceeded expectations."

However, the Japanese company said that "sales of new titles released in Q1 went sluggish."

Looking at the numbers, new titles sales represented ¥5.6 billion ($36.8 million) for the first half of the financial year, compared to ¥6.2 billion ($40.7 million) for the same period the year before. Repeat sales, on the other hand, represented ¥22.1 billion ($145 million) for H1 FY25, versus only ¥17.1 billion ($112 million) in FY24.

Overall full game sales for the period represented ¥27.7 billion ($182 million), compared to ¥23.4 billion ($154 million) last year.

Looking at its free-to-play portfolio, the firm simply said that its titles "performed as expected." F2P sales represented ¥23.1 billion ($152 million), versus ¥26.9 billion ($177 million) in FY24.

Looking ahead, Sega expects its full year to reach net sales of ¥445 billion (just shy of $3 billion), which would represent a 5% drop compared to FY24.

For its games segment specifically, revenue is expected to reach ¥235 billion ($1.5 billion), which would roughly be a 5% increase year-over-year. The release of Metaphor: ReFantazio, Sonic x Shadow Generations, and Football Manager 25 (which was delayed to March 2025) are expected to have an impact. The company also noted the upcoming release of Sonic Rumble, and said it expected "an increase in character licensing revenues from transmedia development centred on Sonic."

As part of its financial report, Sega announced that Amplitude Studios was regaining its independence, a move concluding the "structural reforms" that have been occuring at Sega Europe, leading to the cancellation of Creative Assembly's Hyenas, the sale of Relic, and several hundreds layoffs across Sega owned-studios.

We talked to Rovio's vice president of strategy Timo Rahkonene earlier this year, one year into the €706 million Sega acquisition.