Sega Sammy Holdings Incorporated records disappointing annual financials

Japanese gaming conglomerate Sega Sammy Holdings Incorporated has reportedly released its financial results for the twelve months to the end of March showing that its net profit had declined by 90.7% year-on-year to approximately $11.6 million.

According to a report from Inside Asian Gaming, the year-end figures included a fall of 24.2% year-on-year in net sales to about $2.54 billion alongside a drop of 76.3% in associated operating income to slightly above $59.8 million. The source detailed that these financials come a little over six months after the Tokyo-listed firm inked a deal to offload an 85.1% stake in its land-based arcades operating arm to local entity Global Entertainment Network for Dreams and Aspirations (GENDA).

Resort reversal:

Sega Sammy Holdings Limited is responsible for the non-gaming Phoenix Seagaia Resort on the southern Japanese island of Kyushu while additionally holding a 45% stake in South Korea’s Paradise City integrated casino resort. This segment of its business purportedly racked up an annual deficit in the region of $82 million as its receipts dropped by 39.7% year-on-year to about $57.7 million owing to the devastating impacts of the coronavirus pandemic.

Despite this nosedive and Sega Sammy Holdings Incorporated reportedly proclaimed that it was ‘working to strengthen our ability to acquire guests’ at its Phoenix Seagaia Resort venue and intends to continue accumulating ‘further integrated resort development and operational know-how’ via its interest in Paradise City.

Arcade abasement:

Yokohama-headquartered Sega Sammy Holdings Incorporated reportedly explained that its pachislot and pachinko machines business also suffered owing to a slump in net sales of 51% year-on-year to some $485.9 million. The company purportedly pronounced that this latter crash had been caused by a coronavirus-induced plunge in demand to leave this segment of its operation with a year-end deficit of roughly $103.5 million.

Oncoming optimism:

However, there was reportedly some better news from the entertainment segment of Sega Sammy Holdings Incorporated’s business, which produces home video games and downloadable content, courtesy of a rise of 71.6% year-on-year in net profit to $255 million despite chalking up a 12% decrease in sales to $1.99 billion. Looking ahead and the Japanese company purportedly predicted that it would recover over the course of the next twelve months and improve the profit for its resort business by in excess of 1,000% to hit a $128.09 million target.

Reportedly read a statement from Sega Sammy Holdings Incorporated…

“In the resort industry, demand for both domestic and overseas travel dropped, which resulted in drastically reduced numbers of tourists due to the impact of coronavirus and the travel restrictions imposed by each country. The business plan for the fiscal year ending on March 31, 2022, is based on the assumption that demand will gradually recover throughout the fiscal year despite the impacts of coronavirus.”