BUSINESS

Sega Sammy April-September income down year on year

TAGs: sega sammy holdings

Gaming firm Sega Sammy Holdings Inc. saw an income of JPY9.1 billion ($80.4 million) for the half ending September, a 63.9% drop from last year’s corresponding period.

Sega Sammy April-September income down year on yearIn its latest financial report, the company said it forecast an income of JPY16 billion ($141.4 million) for the year ending March 2019, to be brought on by performance of their Pachislot and Pachinko machines, as well as from operations in Paradise City in South Korea, co-owned with Paradise Co.

Revenue from April to September of this year was JPY171 billion ($1.51 billion), down 12.2% from the same period of the previous year. “Sales and profits decreased from the same period in last fiscal year,” the report read, while also pointing out, “[b]oth Pachislot and Pachinko machines business and entertainment contents business performed strongly versus plan.”

The company projects full-year revenue of JPY390 billion ($3.45 billion), which would be 20.5% higher than the year ending March 2018.

Paradise City was reported as having a “record high level” of table drop, or the amount of cash that customers exchange for chips, of KRW204.4 billion ($181.9 million) in September. Such activity was said to be “led by VIPs from Japan and other areas.” The casino allows only foreigners to gamble.

Pachislot and Pachinko machines saw a decline in units sold, to a total of 129,000, from 194,000 sold during the half ending September 2017. Even so, the introduction of the Type-6 Pachislot machines, which allow shorter playing time for the same rewards, was seen to drive up sales. 103,000 Pachislot and 201,000 Pachinko units were forecast to be sold for the full year ending March 2019.

Sega Sammy said it had begun a marketing campaign in Japan, in preparation for casino businesses in the country, which only this year passed legislation for the creation of large-scale integrated resorts. Among its marketing activities are TV commercials in the Kansai and Fukuoka areas, as well as advertisements in websites and women’s magazines.

It also plans to “strengthen the coordination with Phoenix Resort and Paradise Sega Sammy with a view to participate in domestic integrated resorts.” The company had purchased Phoenix Seagaia Resort back in 2012.

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