Sales and profits down at Sega Sammy
Sega Sammy's latest financial results show declines across the board, with revenue down by almost a third and profits falling 83.7 per cent.
Sales revenue for the six months to September 30 was ¥152.6 billion (£1.25 billion), with net income falling from ¥24.3 billion this time last year to ¥3.9 billion (£32.6 billion).
The company's videogame business brought in ¥33.8 billion – a 13 per cent drop year on year accounting for just over a fifth of its overall revenue. A total of 4.8 million games were sold worldwide, less than this time last year, as Sega Sammy's consumer business sustained an operating loss of ¥6 billion – four times last year's figure.
In a statement, Sega Sammy blamed the decline on sluggish personal consumption worldwide, and sounded a familiar refrain, saying: "The group needs to adapt to a changing business environment in which the market demand for new content geared toward social networking services (SNS) and smartphones is expanding."
Sega Sammy's pachinko business remains the most lucrative, bringing in almost half of the company's total revenue. Its operating profit of ¥20.3 billion, while a drop of 56.7 per cent year on year, kept the company in the black despite declines in other areas. It expects overall profits for the financial year ending March 31 to be ¥38 billion (£311.5 million).