Sega Sammy’s Midyear Financial Review: Gaming Sector Shows Notable Growth Amid Overall Challenges
Overview of Financial Performance
Sega Sammy Holdings announced its financial results for the first half of the fiscal year ending September 30, 2025, revealing results that fell short of expectations. The company’s net sales decreased by 5% compared to the previous year, reaching JPY 201.1 billion (approximately $1.31 billion). Adjusted EBITDA experienced a significant decline of 54.3%, amounting to JPY 16.0 billion ($104 million).
Operating income also dropped sharply by 69.3% to JPY 10.1 billion ($65.8 million), while net profit attributable to shareholders fell dramatically by 90.9% to JPY 2.75 billion ($17.9 million).
Factors Behind the Performance Decline
The decline in financial results was largely influenced by delays in launching new machines in Sega Sammy’s pachislot and pachinko segments, mainly due to extended approval procedures. Additionally, the company faced setbacks connected to its recent acquisitions of online casino B2B companies StakeLogic B.V. and GAN Limited.
Moreover, slower sales in the video game division contributed to the overall weaker performance during this period.
Significant Growth in Gaming Division
Despite the broader challenges, Sega Sammy’s gaming division demonstrated impressive growth. This division encompasses the company’s land-based and online casino supplier operations under Sega Sammy Creation, and partly includes its 45% ownership of Paradise City, an integrated resort in Korea.
A key highlight was the success of the US slot game “Railroad Riches,” which maintained strong player engagement and significantly boosted sales.
The gaming sector was the only segment to report positive growth, with sales soaring 372% year-over-year to JPY 8.5 billion ($55.4 million). The company intends to concentrate on marketing its well-established titles in the North American market while preparing new games for its recently developed Genesis Nova cabinet, known for its space-saving design and ease of installation.
The “Railroad Riches” game has already been adapted to this new Genesis Nova format as part of the ongoing product rollout.
Future Measures and Business Outlook
Sega Sammy is implementing revitalization programs for StakeLogic and GAN aimed at expanding business operations and enhancing profitability. The company is currently reviewing the implications of these efforts on its full-year financial outlook and will provide updates once the assessment is finalized.
Additionally, the company highlighted Paradise City in Incheon, which recently achieved record-high figures for casino drop amounts and hotel occupancy in August. Sega Sammy expects the continued strong performance at this resort, driven mainly by Japanese VIP and mass-market customers, to contribute positively to its profits through equity-method earnings.
