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- Magnagement Message [Fiscal 2012 Business Results Report]
For fiscal 2012, ended March 31, 2012, SEGA SAMMY HOLDINGS' consolidated net sales edged down 0.3% year on year, to ¥395.5 billion, while operating income declined 15.1% year on year, to ¥58.3 billion. The following explains the main factors underlying these results.
The Pachislot and Pachinko Machine Business segment posted net sales comparable with those of the previous fi scal year due to favorable sales of mainstay pahislot machine titles that have significant brand power. Also, the Amusement Machine Sales Business segment posted a 5.7% year-on-year increase in revenues on mainstay title sales and steady revenues from revenue-sharing titles. Meanwhile, the Amusement Center Operations segment recorded a 2.2% decrease in revenues as a consequence of having fewer amusement centers. And, the Consumer Business segment saw revenues decrease 3.6% year on year because of lower unit sales of packaged game software. As a result, the Company's net sales were approximately unchanged year on year.
The Pachislot and Pachinko Machine Business segment improved operating income 10.5% year on year as mainstay titles for highmargin pachislot machines sold well and reusing components reduced cost. In addition, the Amusement Machine Sales Business segment and the Amusement Center Operations segment posted earnings on a par with those of the previous fi scal year. However, the Consumer Business segment recognized an operating loss of ¥15.1 billion, mainly attributable to sluggish sales of new packaged game software and the recognition of valuation losses on work in process for certain titles under development. As a result, operating income decreased 15.1% year on year, to ¥58.3 billion, while the operating margin was down 2.5 percentage points, to 14.8%.
Net income dropped 47.4% year on year, to ¥21.8 billion, because an extraordinary loss of ¥18.5 billion, which resulted from loss on reorganization of the Consumer Business segment, counteracted an extraordinary gain of ¥3.3 billion associated with gain on negative goodwill accompanying the inclusion of Phoenix Resort Co., Ltd., and TAIYO ELEC Co., Ltd., as subsidiaries.
The Company paid an interim dividend of ¥20.00 per share and a year-end dividend of ¥20.00 per share, giving a full-year dividend of ¥40.00 per share. The consolidated dividend payout ratio was 46.1%, compared with 24.5% for the previous fiscal year. Furthermore, the Company acquired 5 million shares of treasury stock at a price of ¥8.2 billion between August 1 and September 5, 2011. In addition, the acquisition of up to 10 million shares of treasury stock at a maximum price of ¥17.0 billion between June 7 and September 28, 2012, has received approval*.
* Because the Company acquired 10 million shares of treasury stock as of August 8, 2012, it has stopped acquiring treasury stock.
The acquisition price was ¥16.1 billion.
