Sega Sammy Holdings Incorporated records $31.3 million quarterly loss

Japanese gaming conglomerate Sega Sammy Holdings Incorporated has reportedly recorded a worrying loss of approximately $31.3 million for the second quarter as the ongoing coronavirus pandemic hurt sales across almost all of its business segments.

According to a report from Inside Asian Gaming, the result for the three months to the end of June was significantly down on the $16.3 million profit the Tokyo-headquartered behemoth chalked up for the same period last year and came as company-wide sales fell by 33.5% to just over $458.3 million.

Epidemic effect:

It was reported that the pachinko and pachislot machine segment of Sega Sammy Holdings Incorporated’s business was the hardest hit over the course of the three-month term as gaming halls across Japan were closed following the outbreak of the coronavirus pandemic. The source detailed that this state of affairs subsequently prompted the giant firm to delay the release of new land-based titles with resultant net sales decreasing by 84.3% year-on-year to about $25.7 million to bring in an ordinary loss of some $80.8 million.

Significant slump:

Sega Sammy also operates South Korea’s Paradise City integrated casino resort in partnership with Seoul-listed Paradise Company Limited as well as the non-gaming Phoenix Seagaia Resort on the southern Japanese island of Kyushu. The firm reportedly explained that net second-quarter sales from this area of its diversified business plummeted by 81.1% year-on-year to $4.4 million with an overall loss growing by almost 29% year-on-year to hit $20.3 million.

Digital divergence:

Sega Sammy moreover pointed to an 89.2% year-on-year deterioration in second-quarter land-based table drop in addition to an associated 80.5% fall in guest numbers at Paradise City although its ‘entertainment contents’ business doubled sales to ship some 12,980 titles as people stayed at home during the pandemic.

Further fall:

Finally, Sega reportedly proclaimed that net second-quarter sales of non-pachinko amusement machines weakened by 15% year-on-year to $427.5 million due to the ‘suspension and reduced operation of amusement centers’ although ordinary income from this segment actually rose by 68.3% to top $78.4 million.