Officials from Japanese publisher and arcade manufacturer Sega Sammy Holdings have announced the company’s first quarter financial results, which saw net profits dropping by nearly 93 percent, following a downturn in sales of Sammy’s pachinko slot machines.
Net earnings for the company fell from ¥10.70 billion ($93.0m) last year to ¥779 million ($6.8m), as revenue fell 14.8 percent to ¥85.62 billion ($744.8m). Operating profit also fell by 84.1 percent to ¥2.80 billion ($24.4m).
Sales for the company’s pachinko and other slot machines saw sales more than halve to ¥21.81 billion ($189.7m), attributed to a lack of new product launches during the period.
Other areas of the company’s business, which use the Sega brand more prominently, fared better, with arcade game sales increasing from ¥12.71 billion ($110.5m) in the previous year to ¥17.98 billion ($156.4m) for a profit of ¥4.05 billion ($35.3m). Amusement centre operations revenues also increased from ¥21.02 billion ($182.8m) to ¥25.30 billion ($220.0m), with a profit of ¥2.01 billion ($17.5m).
Sega’s consumer division saw sales increase from ¥11.60 billion ($100.9m) to ¥16.54 billion ($143.8m). Despite these positive results, and like most publishers during this period, the company still recorded a loss of ¥4.06 billion ($35.4m).
Despite the overall poor results, the company has made no changes to its full year predictions, with an expected net profit rise of 13.3 percent to ¥75 billion ($653m) on a 23.3 percent increase in revenue of ¥682 billion ($5.9bn).
