Japanese Uncertainty Prompts Weak Sega-Sammy Results News
Chris Leyton
13/05/2008
SEGA-Sammy posts an operating and net loss for the previous financial year - we told them Nights: Journey of Dreams was bad...
A tumultuous transitional phase for SEGA-Sammy's core Pachinko business has attributed to an operating loss for the Japanese giant in the fiscal year ended March 31st 2008.
Net sales for the year ended at 458.98 billion yen (£2.32 billion) compared to 528.24 billion yen (£2.62 billion) in the year ended March 31st 2007. As a result the company posted an operating loss of 5.83 billion yen (£28.92 million) for the fiscal year in contrast to an operating profit of 76.53 billion yen (£386.47 million) in the previous year, resulting in a net loss of 52.47 billion yen (£264.97 million) compared to a net income of 43.46 billion yen (£215.62 million) in the year ended March 31st 2007.
Despite a decrease in the Japanese market, SEGA-Sammy's consumer business posted a decrease in net sales from 103.85 billion yen (£524.44 million) to 91.23 billion yen (£452.61 million), resulting in an operating loss of 9.81 billion yen (£49.54 million) compared to an operating income of 132 million yen (£654,883) in the previous year.
As a result of focusing on its core business, SEGA confirmed that it has dropped plans to develop a new amusement centre in Yokohama's Minato Mirai 21 district. The company also confirmed that it has dissolved SEGA Amusements Singapore and SEGA Korea Ltd as a means to reviewing its operations.
Continuing uncertainty surrounding the Pachinko parlour business suggests the Japanese company will face a difficult year, but suggests continuing synergy with Ginza Corporation and Taiyo Elec Co will assist in the changeable market. The company suggests it will generate revenue in the consumer business by selling licensed film titles overseas and focus on a revision of its Japanese line-up.
For the year ended March 31st 2009, SEGA-Sammy predicts net sales to reach 470 billion yen (£2.37 billion), representing a 2.4% year-on-year increase, operating income to return back to profit of 15 billion yen (£75.75 million), with a resulting net income of 5 billion yen (£25.25 million).