Sega Sammy Revises Net Sales and Operating Income Forecast for its Pachislot and Pachinko Business

Japanese entertainment conglomerate Sega Sammy Holdings Inc has revised its net sales and operating income forecast for its pachislot and pachinko business as a result of an ongoing component shortage.

The company previously forecasted unit sales of 101,000 pachislot units and 103,000 pachinko units, but has revised this number down to 67,000 and 77,000 respectively.

This has brought the full-year forecast of pachislot and pachinko machines sales to JPY65 billion, down from a previous estimate of JPY89 million. The full-year forecast for operating income from this business was also revised down to JPY2 billion, down from JPY9 billion.

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That being said, Sega Sammy Holdings as a whole posted strong performance in the six months ended 30 September 2021 centered on its entertainment contents business, though it also saw improved profitability from its pachislot and pachinko business.

Said pachislot and pachinko arm reported sales revenue of JPY23.3 billion, up from JPY10.7 billion in the prior-year period. Operating loss narrowed from JPY12 billion to just JPY1.7 billion in the quarter.

Sega Sammy said the loss incurred by its Pachislot and Pachinko business is expected to be more than covered by the strong performance of its Entertainment Contents business, which saw operating income of JPY22.2 billion in the period.

Meanwhile, the company’s resorts business, which includes Paradise Sega Sammy, was impacted by a fall in Japanese and Chinese VIP players. Sega Sammy said it expects recovery to be delayed due to the continuing restriction of foreign visitors.