Sega Sammy Holdings reported a sharp decline in profitability for the first nine months of its fiscal year ending March 2026, with impairment charges and weaker entertainment performance outweighing modest revenue growth.
According to its quarterly filing, consolidated sales reached JPY 335.2bn ($2.19bn), up 4.0% year-on-year.
Operating income fell 54.7% to JPY 19.8bn, while ordinary income declined 51.8% to JPY 23.8bn. The company recorded a net loss of JPY 16.8bn, compared with a profit of JPY 41.7bn in the prior year period.
The decline was largely attributed to the Entertainment Contents and Gaming businesses. Performance of new game releases and free to play titles trended below expectations, while recently acquired operations generated losses and amortization expenses.
The group recorded an impairment charge of approximately JPY 31.3bn related to goodwill and other intangible assets, reflecting reduced revenue projections and cost adjustments.
Sega Sammy also indicated that it expects an additional impairment of roughly JPY 15bn linked to Stakelogic by fiscal year-end, subject to final review. The charges significantly impacted earnings despite stable underlying activity in some business segments.
Following the results, the company revised its full-year outlook. It raised its revenue forecast to JPY 490.0bn from JPY 475.0bn but cut its operating income projection 24.5% to JPY 40.0bn.
The group now expects a full-year net loss of JPY 13.0bn, compared with its earlier forecast of JPY 37.5bn profit. Sega Sammy also announced a JPY 20.0bn share buyback and said it would pause large-scale acquisitions while reviewing capital allocation.
Cash and deposits declined during the period, reflecting acquisition-related outflows and higher working capital needs. The company continues to integrate recently purchased international gaming businesses while managing amortization and restructuring costs.
In November 2025, Sega Sammy reported first half operating income fell 69% to JPY 10.0bn, driven by a 35% decline in pachinko and pachislot machine sales and integration costs related to acquisitions including GAN and Stakelogic.
Sega Sammy has been expanding its global gaming presence through international acquisitions while maintaining its traditional pachinko and entertainment operations
