Sega Sammy posts ¥5.7bn loss as impairments hit FY2026 results
The weaker bottom line was mainly driven by major impairment charges linked to acquired assets Rovio Entertainment and Stakelogic BV.
Japan.- Sega Sammy Holdings Inc, the parent company of slot machine supplier Sega Sammy Creation, has reported mixed results for the fiscal year ended March 31, 2026. Revenue growth was overshadowed by asset impairments, restructuring charges and losses in its gaming division.
Full-year sales rose to ¥487.5bn (US$3.08bn), up from ¥428.9bn (US$2.71bn) in the prior year. However, operating income dipped to ¥47.1bn (US$298m) from ¥48.1bn (US$304m). The company reported a net loss of ¥5.7bn (US$36m), compared with a ¥45bn (US$285m) profit a year earlier.
The weaker bottom line was mainly driven by extraordinary losses of ¥58.8bn (US$373m), including major impairment charges linked to acquired assets Rovio Entertainment and Stakelogic BV. Adjusted EBITDA fell from ¥62.2bn (US$394m) to ¥16.6bn (US$105m), reflecting acquisition-related impacts, write-downs and higher operating costs.
By segment, entertainment content remained the largest revenue driver at ¥326.6bn (US$2.07bn), though operating income declined to ¥32.4bn (US$205m). Free-to-play revenue rose 14 per cent to ¥53.7bn (US$341m), supported by new titles including Persona 5: The Phantom X and Sonic Rumble Party, although the latter failed to do as well as expected.
Management confirmed the cancellation of a planned global AAA online video game. The gaming business widened its operating loss to ¥7.2bn (US$46m) from ¥0.7bn (US$4m) a year earlier. The decline was driven by consolidation costs from Stakelogic and GAN Ltd, alongside continued investment in international expansion and weaker-than-expected early-stage returns. Gaming revenue increased to ¥25.3bn (US$160m), but profitability remained under pressure due to integration and restructuring expenses.
Within gaming machines, sales rose 43.1 per cent to ¥8.3bn (US$53m), supported by strong demand in North America, particularly for video slot machines. The company expects growth to ¥9.1bn (US$58m) in 2027.
For 2027, total sales are projected at ¥510.0bn (US$3.23bn) with operating income of ¥44.5bn (US$282m). Net profit is expected to rebound to ¥32.5bn (US$206m). The gaming division is expected to report operating loss of around ¥10.0bn (US$63m).
