Japanese gaming conglomerate, Sega Sammy Holdings, has revised its forecast for the financial year ending on March 31st, 2022. This comes after the company reported a significant increase in sales and income for a nine-month period ending on December 31st, 2021. Releasing its results through the December quarter on February 10th, Sega Sammy said net sales for the period had risen 12.6% year-on-year to $2.04 billion. This reversed a loss of $54 million during the same period a year earlier. The company now anticipates net sales of $2.72 billion for FY23, revised up from a previous forecast of $2.63 billion. Profits have also been revised from $129 million to $229 million.
The primary reason for the improvement has been strong results in each of its Entertainment Contents Business and pachislot/pachinko segments, offset by the ongoing impact of the COVID-19 pandemic on its resorts segment. The company said that the total table drop at Paradise City during the aforementioned nine-month period reached just 47.8% of the prior year’s level while the number of guests was 58.4%. Guest numbers at Phoenix Seagaia Resort grew by 114% year-on-year, however, pushing segment sales to a 36.8% increase to $58 million. Segment loss for the period was $40 million.
In the pachinko and pachislot segment, net sales grew 38.7% year-on-year to $447 million with an ordinary income of $52 million compared with a prior-year loss of $76 million.
“For pachinko machines, the replacement is progressing well with multiple titles of new regulation machines gaining popularity to meet the deadline for removing the [old] machines based on former regulations, scheduled for the end of January 2022,” the company said. “For pachislot machines, although the performance has been relatively sluggish, it is hoped that new titles expected to become popular among users [as a result of a wider range of game elements will be introduced]. Meanwhile, the supply system has been unstable due to the global shortage of semiconductors and logistics disruption, requiring continuous monitoring.”
In the Entertainment Contents Business, comprised of games for PCs and consoles, net sales grew 6.1% to $1.53 billion while ordinary income increased 11.0% to $318 million.
(All information was provided by Inside Asian Gaming)