Consolidated net sales decreased 8.5% YoY to ¥428.9 billion mainly due to reactionary decline of Smart Pachislot Hokuto No Ken, which were a hit in FY2024/3. 

Operating income decreased 16.8% YoY to ¥48.1 billion due to reactionary decline in Pachislot & Pachinko Machines Business, although Consumer area and Animation area in Entertainment Contents Business performed strong. 

While recording equity in gains of affiliates including PARADISE SEGA SAMMY, etc., interest expenses and foreign exchange losses were recorded as non-operating expenses. As a result, ordinary income decreased 11.1% YoY to 53.1 billion yen. 

In the fiscal year ended March 31, 2025, the impact of decline due to the rebound by the Pachislot and Pachinko Machines Business was significant, resulting in a decrease in both sales and each stage of profit up to ordinary income on a consolidated basis compared to the prior fiscal year. In contrast, in the Entertainment Contents Business,
positioning as a growth area, the animation and merchandising of the Group’s major IPs progressed in line with the transmedia strategy, a priority item in the Medium-term Management Plan “WELCOME TO THE NEXT LEVEL!”. Notably, the “Sonic” IP has contributed to an increase in both game and character licensing revenue, thereby boosting the operating income of this business.

In addition, the Group is reviewing and optimizing its business portfolio. In the fiscal year ended March 2025, the Group recorded an extraordinary loss on business restructuring due to the transfer of the overseas development studio, Amplitude Studios SAS, through a management buyout. However, due to the recording of extraordinary gains by transfer of shares in Phoenix Resort Co., Ltd., and the rebound from the business restructuring loss recorded in the prior fiscal year at the Group’s European base, net income attributable to owners of the parent increased compared to the prior fiscal year.

For the nine months ended December 31, 2024, although sales and ordinary income in the Entertainment Contents Business significantly increased, net sales and ordinary income fell from the same period in the prior year when “Smart Pachislot Hokuto No Ken” was a huge hit in the Pachislot and Pachinko Machines Business.

The Group recorded an extraordinary loss of approximately ¥6.1 billion in the second quarter for the fiscal year due to the sale of overseas development studio, Amplitude Studios SAS through a management buyout. In contrast, as the Group was influenced by the rebound effect from the restructuring loss occurred in the prior year, and the Company recorded an extraordinary income by transfer of the shares of Phoenix Resort Co., Ltd., in the first quarter for the fiscal year, the profit attributable to owners of the parent resulted in an increase from the same period in the prior year.

For the six months ended September 30, 2024, the sales fell from the same period in the prior year when “Smart Pachislot Hokuto No Ken” was a huge hit. Conversely, in the Entertainment Contents Business, the consumer area and the animation area showed favo rable performance. In the Pachislot and Pachinko Machines Business, sales of titles in general showed steady performance. As a result, both sales and ordinary profit made a better than expected from the beginning of the current fiscal year.

The Group recorded an extraordinary loss of approximately ¥5.9 billion in the second quarter for the fiscal year due to the sale of overseas development studio, Amplitude Studios SAS through a management buyout. In contrast, as the Group was influenced by the rebound effect from the restructuring loss occurred in the same period of prior year, and the Company recorded an extraordinary income by transfer of the shares of Phoenix Resort Co., Ltd., in the first quarter for the fiscal year, the profit attributa ble to owners of the parent resulted in an increase from the same period in the prior year.

The adjusted EBITDA, which the Company adopted as the management indicator since the current fiscal year, reached to ¥34.8 billion. This resulted in short from the same period of prior year, ¥37.5 billion, but still a better than expected from the beginnin g of the current fiscal year.

In the first quarter for the fiscal year ending March 31, 2025, the sales and profit fell from the same period in the prior year when “Smart Pachislot Hokuto No Ken” was a huge hit. The sales mainly generated by new Full Games and some repeat titles of consumer area in the Entertainment Contents Business and generated by titles in the Pachislot and Pachinko Machines Business showed steady performance. As a result, the decrease in ordinary income from the same period in the prior year was limited to ¥1.2 billion. Moreover, adjusted EBITDA, which the Company adopted as the management indicator since the current fiscal year, reached to ¥25.8 billion with exceeding that from the same period in the prior fiscal year, which is ¥24.7 billion.

 In addition, the Company recorded an extraordinary income of approximately ¥8.4 billion by transfer of the shares of Phoenix Resort Co., Ltd., and the profit attributable to owners of the parent resulted in an increase from the same period in the prior year.