SEGA Sammy continues to see rise in sales and slump in profits

SEGA Sammy released their fiscal year report for the entire 2019. These are the results from March 31, 2018 to March 31, 2019. SEGA Sammy will be referred to as “SS”.

Net sales for SS are reported at ¥331 billion ($2.9 billion) of 2.5% from last year. However, overall profits saw a sharp 70.4% decline from ¥8 billion ($71.7 million) to ¥2 billion($17. 9 million). With this SS has adjusted to the future outcome in March 2020.

They are projecting in sales ¥390 billion ($3.4 billion), a 17.6% increase and a whopping 467.6% increase in profits at ¥15 billion ($134 million). The ¥390 billion is still on track for their ‘Road to 2020’ projections. Into the SEGA’s entertainment, they are reporting that physical games sold 24 million copies, an increase from the 17 million units sold from last year. This is thanks to the repeat sales of previous titles.

As a result, SEGA net sales are at ¥219 billion ($1.9 billion), an increase of 5.6% from last year, and operating income is at ¥9.8 billion ($87.8 million).

As for the ‘Road to 2020’, SEGA is expecting a large increase of sales due to new titles from existing IPs. SEGA is also focusing more on physical games rather than digital due to significant deterioration of the business environment and lack of hit titles.

They plan to recover in the digital area by narrowing down the number of titles to develop and focusing more on existing IPs rather than new ones.

Source: SEGA Sammy