Sankyo (6417) Q2 2025 earnings summary

Executive summary

• Net sales for the first six months were ¥90,729 million, down 21.9% year-over-year, with operating income at ¥36,288 million, down 20.2%, and net income at ¥26,235 million, down 20.0%.

• Progress toward full-year forecasts remains steady, driven by strong pachislot machine sales and increased production of popular titles.

• The pachinko and pachislot industry saw revitalization from new Smart machines, with both conventional and Smart models introduced.

• The Japanese economy showed moderate recovery, but uncertainty remains due to overseas downturns, price increases, and geopolitical risks.

Financial highlights

• Consolidated net sales: ¥90,729 million (–21.9% YoY); operating income: ¥36,288 million (–20.2%); net income: ¥26,235 million (–20.0%).

• Gross profit margin improved to 59.8% (+4.2pt), operating margin at 40.0% (+0.9pt).

• Gross profit for the period was ¥54.2 billion, down from ¥64.5 billion year-over-year.

• EPS: ¥119.54, up ¥6.43 year-over-year.

• Comprehensive income was ¥25.7 billion, a 21.9% decrease year-over-year.

Outlook and guidance

• Full-year forecast: net sales ¥180,000 million, operating income ¥61,000 million, net income ¥42,000 million, EPS ¥191.31.

• Progress rates: net sales 50.4%, operating income 59.5%, net income 62.5% of full-year plan.

• Six new pachinko titles planned for release in the second half to boost sales volume.

• Pachislot sales expected to remain strong with continued increased production and new titles.