Sega Sammy profit surges 298.6% as first-half revenue reaches ¥212.58 billion

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Sega Sammy Holdings corporate logo following its first-half financial results for fiscal 2027. Image Credit: SEGA SAMMY HOLDINGS INC.

Sega Sammy Holdings recorded a sharp increase in attributable net profit for the six months ended September 30, 2026, supported by stronger operating income and improved profitability across its gaming and pachislot and pachinko businesses. Revenue growth was more moderate, rising 5.7%, while the company maintained its full-year earnings forecast.

Sega Sammy’s half-year earnings: Key figures

For the six months from April 1 to September 30, 2026, the Japanese entertainment group reported the following results:

Financial measure	First half FY2027	Year-on-year change
Net sales	¥212.58 billion	+5.7%
Operating income	¥14.28 billion	+42.2%
Ordinary income	¥16.13 billion	+49.4%
Profit attributable to owners of parent	¥10.93 billion	+298.6%
Adjusted EBITDA	¥24.58 billion	+54.0%

The figures show that profitability improved considerably faster than revenue.

However, the increase was not uniform across the group: the Pachislot and Pachinko Machines business delivered particularly strong earnings, while Entertainment Contents recorded lower sales and ordinary income (Source: SegaSammy.co.jp | セガサミーホールディングス “Consolidated Financial Results for the 6 months ended September 30, 2026 Japanese GAAP”).

Pachislot and pachinko business delivers strongest earnings growth

The Pachislot and Pachinko Machines segment was the strongest contributor to Sega Sammy’s improved profitability during the reporting period.

External sales in the segment increased 17.2% year on year to ¥49.10 billion, while ordinary income climbed 331.6% to ¥15.43 billion. Adjusted EBITDA also rose substantially, reaching ¥17.01 billion, compared with ¥3.43 billion in the same period last year.

Sega Sammy attributed the performance to stronger-than-expected demand for its pachislot products, particularly Smart Pachislot Lycoris Recoil. Additional sales of Smart Pachislot Kabaneri of the Iron Fortress: The Battle of Unato also supported results.

The company also reported that reel-unit sales for pachislot, which began in March 2026, accounted for more than 30% of its pachislot units sold during the first half.

Several additional machines are scheduled for release or installation, including Smart Pachislot Beast King, Smart Pachislot Kaitou Tenshi Twin Angel 2 and e SHANGRI-LA FRONTIER. However, Sega Sammy noted that regulatory approvals for pachislot machines remain low across the wider industry.

Gaming revenue nearly doubles, but segment losses widen

Sega Sammy’s Gaming segment recorded one of the group's largest revenue increases, with external sales rising 91.1% to ¥16.36 billion. However, the higher revenue came alongside a wider ordinary loss of ¥4.19 billion, compared with ¥745 million in the corresponding period a year earlier. Adjusted EBITDA also remained negative, at ¥2.59 billion.

The company attributed the increase in sales and the wider loss partly to the consolidation of results from GAN Limited and Stakelogic B.V., both acquired during the previous fiscal year.

Meanwhile, sales from Sega Sammy's established gaming machine business remained solid, supported by titles including Railroad RICHES and Super Burst. The company also began launching BONANZA BROS. GOLDEN HEIST in September.

At its South Korean integrated resort investment, PARADISE CITY,quarterly casino drop reached a record high in the second quarter. Sales performed well, although the property's contribution to equity-method earnings declined year on year, partly because of higher expenses associated with the hotel that opened in March. Sega Sammy said the resort's profit contribution remained in line with expectations.

The company said its longer-term Gaming strategy will focus on developing an omnichannel business model, strengthening gaming machine sales, expanding lease-based sales and entering additional markets through new licences.

It also plans to continue turnaround programmes at GAN and Stakelogic. These include reducing fixed costs, improving operational efficiency and developing new revenue opportunities. GAN is progressing with a platform migration, while Stakelogic plans to focus on more efficient operations and adapting established gaming machine intellectual property for online formats.

Entertainment Contents revenue declines despite selected areas performing well

Sega Sammy's Entertainment Contents segment, which includes consumer games, animation and amusement machines, reported external sales of ¥145.11 billion, down 2.5% year on year.

Ordinary income declined 35.7% to ¥10.00 billion, while adjusted EBITDA fell 30.3% to ¥14.83 billion. Despite the decline, the company said the segment performed above expectations overall. Catalogue sales of full-game titles remained solid, while downloadable content and licensing revenue from subscription platforms exceeded expectations. Free-to-play performance was slightly below expectations.

Animation revenue also received contributions from Detective Conan: Fallen Angel of the Highway and the third Sonic film, alongside income from the first two films.

Looking ahead, Sega Sammy identified several upcoming releases, including Football Manager 27, scheduled for November 10, 2026, STRANGER THAN HEAVEN in January 2027 and Persona 4 Revival in February 2027. The company also expects further animation revenue from The Angry Birds Movie 3 and Sonic the Hedgehog 4.

Sega Sammy maintains FY2027 financial forecast

Despite the substantial increase in first-half net profit, Sega Sammy left its full-year financial forecast unchanged.

For the fiscal year ending March 31, 2027, the company continues to project:

Financial measure	FY2027 forecast
Net sales	¥510.00 billion
Operating income	¥44.50 billion
Ordinary income	¥47.50 billion
Profit attributable to owners of parent	¥32.50 billion
Earnings per share	¥160.36

The forecast represents expected full-year sales growth of 4.6%, while operating income and ordinary income are projected to decline 5.6% and 12.4%, respectively, compared with the previous financial year.

Sega Sammy also maintained its annual dividend forecast at ¥55 per share, comprising an interim dividend of ¥27 and a planned year-end dividend of ¥28. The interim payment is scheduled to begin on December 4, 2026.

The unchanged outlook indicates that the company is maintaining its existing expectations for the remainder of the financial year, even as its first-half profitability improved considerably.

What to watch as Sega Sammy enters the second half

Sega Sammy's latest results highlight different performance trends across its entertainment, pachinko and gaming operations.

The Pachislot and Pachinko Machines segment delivered the strongest earnings improvement, while the Gaming business generated substantial revenue growth but continued to record losses following the integration of GAN and Stakelogic. Entertainment Contents, meanwhile, faced lower year-on-year sales despite selected titles and licensing activities performing above expectations.

The company's ability to improve the profitability of its acquired gaming businesses, sustain pachislot demand and deliver its upcoming entertainment releases will be important factors in determining whether it can meet its full-year financial targets.

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