Sega Sammy Holdings has posted significantly lower earnings for the first half of FY2026, as weaker contributions from key divisions and a disrupted release schedule for pachislot and pachinko machines pushed profitability well below the prior-year period.
Group sales for the six months ended September 30 totaled JPY 201.1bn ($1.305bn), a 5% year-on-year decrease. The company recorded mixed performance across segments.
Entertainment Contents rose to JPY 148.8bn, a 5% increase, while Pachislot & Pachinko Machines fell to JPY 41.8bn, a 35% decline. The Gaming segment improved to JPY 8.5bn, up 372%, reflecting recently consolidated subsidiaries.
The downturn across major segments led to markedly softer profitability. Consolidated operating income fell 69% to JPY 10bn. Operating income in Entertainment Contents decreased to JPY 15.9bn, a 15% decline, while the Pachislot & Pachinko division dropped to JPY 3bn, an 86% decrease. The Gaming segment posted an operating loss of JPY 3bn, compared with a JPY 1bn loss in H1 FY2025.
Adjusted EBITDA reached JPY 15.9bn, a 54% decrease. Sega Sammy said the year-on-year decline was driven primarily by the pachinko and pachislot segment, where adjusted EBITDA dropped 85% from JPY 23.2bn to JPY 3.4bn.
Ordinary income fell to JPY 10.8bn, a 67% decline, while profit attributable to owners of the parent dropped 91% to JPY 2.7bn.
On the balance sheet, cash and deposits declined 28%, from JPY 198.8bn at the end of March to JPY 142.3bn in September, largely due to acquisition-related outflows. Inventories increased 12% to JPY 118.6bn, while intangible assets rose 46% to JPY 132.9bn, following consolidation of GAN and Stakelogic.
Sega Sammy said results fell short of expectations due to softer-than-forecast entertainment sales, delays in pachislot approvals and integration costs tied to its recent acquisitions. The company expects stronger performance in the second half as new pachinko and pachislot titles roll out and key entertainment releases approach launch.
Earlier this year, Sega Sammy expanded its global gaming footprint through the acquisitions of GAN and Stakelogic, while continuing investment in its video game pipeline and automation upgrades in pachislot production.
The company cited the absence of last year's JPY 9.0bn extraordinary gain and new amortization from its recent gaming acquisitions as factors affecting results
