Entertainment Contents and Pachislot and Pachinko Machines businesses performed strongly year on year and the recovery of performance in Resort business progressed. As a result, consolidated net sales were up 21.4% year on year to ¥389.6 billion.

Entertainment Contents and Pachislot and Pachinko Machines businesses performed strongly year on year and losses in Resort business has narrowed. As a result, operating income were up 45.9% year on year to ¥46.7 billion.

While recorded loss on investments in partnership, as well as equity in losses of affiliates, including PARADISE SEGASAMMY, etc. as non-operating expenses, recorded gain on investments in partnerships and foreign exchange gains associated with the revaluation of assets denominated in foreign currencies. As a result, ordinary income were up 48.3% year on year to ¥49.4 billion.

Achieved significant YoY increases in both sales and profits due to strong performance of pachinko/pachislot machines while parts of the Entertainment and Content business were sluggish in Q2 of FY2024. Non-operating income includes equity in earnings, as well as foreign exchange gains due to the washing of receivables and payables denominated in foreign currencies and the settlement of accounts. Non-operating expenses include loss on investment partnership management. Extraordinary losses included a loss on business restructuring in the CS segment of the entertainment business, amounting to approximately JPY9.5 billion. (Expect to record JPY14.5 billion losses in full-year)

As announced on November 8, we have revised the full-year operating forecast. 
While Consumer area in Entertainment Content business is expected to perform below the previous forecast, Pachislot and Pachinko Machines business is performing strong. As a result, sales and ordinary income are expected to exceed the previous forecast. On the other hand, due to the recording of structural reform losses as extraordinary losses, profit attributable to owners of parent is expected to fall short of previous forecast.

 In Q1, Pachislot and Pachinko Machines business drove overall performance, mainly due to strong sales of pachislot machines such as “Smart Pachislot Hokuto No Ken”. As a result, we are off to a good start. Non-operating income includes gain on investments in partnership, etc. Non-operating expenses includes foreign exchange losses due to revaluation and settlement of receivables and payables denominated in foreign currencies, etc. In addition, extraordinary losses was recorded due to the business restructuring of SEGA’s development studio, Relic Entertainment.