Sega Sammy (6460) Q1 2025 earnings summary

Executive summary

• Q1 FY2025/3 saw a steady start, with strong Entertainment Contents and Pachislot & Pachinko Machines, and extraordinary income from the PHOENIX RESORT share transfer.

• Strategic moves included the sale of PHOENIX RESORT shares and the announced acquisition of Stakelogic B.V. to expand into North American online gaming.

• Adjusted EBITDA increased to ¥25.9B, reflecting robust underlying business performance.

• Segment reporting was revised, establishing the new Gaming Business and abolishing the Resort Business under the new Medium-term Plan.

Financial highlights

• Q1 sales were ¥104.7B, down from ¥108.2B year-over-year; operating income was ¥19.3B, down from ¥22.7B.

• Profit attributable to owners of parent rose to ¥24.5B from ¥17.2B year-over-year, driven by an ¥8.4B extraordinary gain from the PHOENIX RESORT share transfer.

• Adjusted EBITDA increased to ¥25.9B from ¥24.7B year-over-year.

• Net income per share rose 45.2% to ¥113.54.

• Comprehensive income grew 49.9% to ¥39.0B.

Outlook and guidance

• Full-year sales forecast is ¥445.0B, with operating income of ¥45.0B and profit attributable to owners of parent at ¥39.0B.

• Mainstay title launches are scheduled from Q3 onward in Entertainment Contents; e Hokuto no Ken 10, a featured Pachislot & Pachinko title, launches in Q2.

• The Stakelogic acquisition is expected to close by Q1 FY2026/3, with minimal impact on this fiscal year's results.

• Dividend forecast unchanged at ¥50 per share for FY2025.