Sankyo (6417) Q3 2025 earnings summary

Executive summary

• Net sales and profits declined year-over-year, but results are progressing in line with the initial plan, prompting upward revisions to earnings and dividend forecasts.

• The pachislot business saw significant growth in net sales and profit due to strong sales of new titles and increased production, offsetting weak pachinko sales.

• The pachinko market remained sluggish, but Smart Pachinko and Smart Pachislot machines and aggressive marketing are expected to revitalize demand.

Financial highlights

• Consolidated net sales for the first nine months: 153,700 million yen, down 9.9% year-over-year.

• Operating income: 62,442 million yen, down 4.3% year-over-year.

• Net income attributable to owners: 45,508 million yen, down 5.7% year-over-year.

• Net income per share: 207.31 yen, up 32.88 yen year-over-year; EPS for the period was 204.58 yen, adjusted for share split.

• Gross profit margin improved to 59.2% (+3.8pt), and operating margin to 40.6% (+2.4pt) year-over-year.

Outlook and guidance

• Full-year net sales forecast revised to 190,000 million yen (+5.6% vs previous forecast, +4.6% YoY).

• Operating income forecast revised to 71,000 million yen (+16.4% vs previous forecast, +2.1% YoY).

• Net income forecast revised to 51,500 million yen (+22.6% vs previous forecast, +4.3% YoY).

• Year-end dividend forecast raised from 40 yen to 60 yen per share, annual dividend forecast at 100 yen (post-split basis).

• Pachinko machine sales volume forecast lowered to 223,000 units; pachislot machine sales volume forecast raised to 131,000 units.