Financial and ESG Information
Earnings information
Years
FY2024/3
Sales
Consolidated net sales were up 20% year on year to 467.8 billion yen due to strong sales in Pachislot and Pachinko Machines businesses and Consumer area of Entertainment Content business mainly in Japan and Asia and the consolidation of Rovio Entertainment.
Operating Income
While Entertainment Contents saw a decrease in profit mainly due to weak performance in European Consumer area, Pachislot and Pachinko Machines business achieved significant increases, mainly due to strong sales of pachislot machines such as Smart Pachislot Hokuto No Ken. As a result, operating income were up 21% year on year to 56.8 billion yen.
Ordinary Income
While recorded commission fee and loss on investments in partnership as non-operating expenses, in addition to equity in earnings of affiliates including PARADISE SEGASAMMY, etc., interest income and gain on investments in partnerships were recorded as non-operating income were recorded. As a result, ordinary income were up 20% year on year to 59.7 billion yen.
Profit attributable to owners of parent
In the Consumer area of the Entertainment Contents Business, the Company recorded an extraordinary loss of approximately 19.2 billion yen due to the decision to implement structural reform in response to the deteriorating business environment, centered on its European studios. In addition, profit attributable to owners of parent decreased 28% from the previous fiscal year to 33.0 billion yen due to an increase in tax expenses, which were at a low level in the previous fiscal year.
Quarterly
FY2024/3
Q4
Regarding Q4 results of this fiscal year, as both the Pachislot and Pachinko Machines business and Resort business performed steadily, the sales of new titles and repeat sales of Full Game went strong in Consumer area of Entertainment Contents business. As a result, the results were higher than the revised forecast announced on Feb. 9 with both sales and profit increased significantly YoY.
In addition, an extraordinary loss of 17.8 billion yen was recorded for loss on business restructuring in the Consumer area in Europa. (Recorded approx. 6.5 billion yen for loss on business restructuring in Q4 alone)
Q3
Regarding the results through Q3 of this fiscal year, both sales and profit increased significantly YoY for the whole, as the Pachislot and Pachinko Machines business performed strong centered on sales of pachislot, although the performance of Entertainment Contents business were significantly lower than the previous forecast due to sluggish sales of some Full Game titles released in Q3. Non-operating profit includes equity in earnings of affiliates and non-operating expenses include foreign exchange losses due to the revaluation and settlement of receivables and payables denominated in foreign currencies, etc. In addition, In addition, an extraordinary loss of JPY11.2 billion was recorded for loss on restructuring in the Consumer area of the Entertainment Contents business. (Recorded loss of approx. JPY1.7 billion in Q3 alone)
As announced on February 9, we have revised the full-year operating forecast.
Q2
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.
As announced on November 8, we have revised the full-year operating forecast.
Q1
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.