Sega Sammy gaming sales climb 91% to JP¥16.36bn as loss deepens

Sega Sammy Holdings reported JP¥16.36bn ($103.4m) in gaming business sales for the six months to September 30, 2026, an increase of 91.1% year-over-year. The segment's ordinary loss widened to JP¥4.19bn from JP¥745m a year earlier.

GAN and Stakelogic, acquired during the previous fiscal year, accounted for much of the sales increase and the larger loss. Their results began entering Sega Sammy's accounts from the second quarter of the prior fiscal year, making this the first half-year comparison with a fuller contribution from both businesses. 

Sega Sammy also records their results with a three-month delay because they have December year-ends.

The investor presentation put GAN sales at about JP¥10.8bn, up from JP¥4.8bn, and Stakelogic sales at JP¥1.2bn, up from JP¥700m. Sales of gaming machines increased from JP¥2.9bn to JP¥4.1bn. 

Sega Sammy said sales of established video slot series remained solid, while its new Bonanza Bros. Golden Heist machine began rolling out in September.

The gaming division's adjusted EBITDA was negative JP¥2.59bn, compared with negative JP¥1.38bn in the prior-year period. The presentation showed operating losses of about JP¥2.2bn at GAN and JP¥1.2bn at Stakelogic. 

Gaming machine sales generated about JP¥1.4bn in operating profit, partly offsetting those losses.

Paradise City, operated by equity-method affiliate Paradise Sega Sammy in South Korea, recorded a quarterly high for casino drop, or chip purchases, in the second quarter. Its contribution to Sega Sammy's equity-method earnings nevertheless fell to about JP¥400m from JP¥2.1bn, partly because of expenses linked to a hotel that opened in March.

Across the group, net sales rose 5.7% to JP¥212.58bn. Adjusted EBITDA increased 54% to JP¥24.58bn and profit attributable to owners of the parent rose to JP¥10.93bn from JP¥2.74bn.  

Stronger pachislot and pachinko results helped offset lower earnings in entertainment and the gaming division's losses. 

Sega Sammy left its full-year group sales forecast at JP¥510bn and its gaming sales forecast at JP¥34.5bn. For gaming, it plans to reduce fixed costs at GAN and Stakelogic, move GAN to a new platform and adapt established gaming-machine titles for Stakelogic's online portfolio. It targets improved gaming profitability from the fiscal year ending March 2028.

Sega Sammy entered the current fiscal year after reporting a JP¥5.7bn net loss for FY26, partly due to impairment charges associated with Stakelogic and Rovio.