Sega Sammy Holdings reported a 298.6% increase in profit attributable to owners of the parent to ¥10,931 million for the six months ended September 30, 2026. The Japanese entertainment and gaming group recorded net sales of ¥212,584 million, up 5.7%, while operating income increased 42.2% to ¥14,279 million. The results cover the first half of its financial year ending March 31, 2027.
The sharp improvement in group earnings was supported by stronger pachislot performance and substantially lower extraordinary losses. These losses declined to ¥0.7 billion from ¥4.4 billion in the corresponding period, when the company recorded impairment and business restructuring charges. Ordinary income reached ¥16,132 million, an increase of 49.4%, according to the consolidated results reproduced in its interim filing.
Within the Gaming business, sales increased 91.1% to ¥16,358 million. Sega Sammy attributed the expansion partly to the inclusion of acquired businesses GAN and Stakelogic, although their consolidation also contributed to a wider operating loss. The company’s presentation reported a Gaming operating loss of ¥3.9 billion, compared with ¥3.0 billion a year earlier, as it continued turnaround programs at the two subsidiaries.
The existing gaming-machine operation delivered a stronger performance. Sales reached ¥4.1 billion, compared with ¥2.9 billion in the previous first half, while operating income increased to ¥1.4 billion from ¥0.4 billion. Railroad RICHES and Super Burst were among the series supporting sales. Sega Sammy also began launching BONANZA BROS. GOLDEN HEIST in September, extending its use of established entertainment properties in casino products.
Paradise City, the South Korean integrated resort in which Sega Sammy holds a 45% interest, recorded its highest quarterly casino drop during the second quarter. Nevertheless, its contribution to equity-method earnings declined, partly because of higher expenses associated with a hotel opened in March. The company said the resort’s profit contribution remained in line with expectations despite those additional costs.
GAN and Stakelogic remain turnaround priorities
Sega Sammy said it would strengthen the links between its casino equipment and online gaming operations as it develops its Gaming business. “Going forward, efforts will be made to build the foundation for the Gaming Business’s ‘Omnichannel strategy’,” the company stated. Its plans for gaming machines include stronger sales of existing and new titles, particularly in North America, alongside additional customers, regional licenses and lease-based business.
GAN’s program includes migration to a new platform, while Stakelogic is narrowing its game lineup and bringing proven gaming-machine intellectual property into online formats. Both businesses are pursuing fixed-cost reductions and operational improvements. Sega Sammy’s presentation places the expected improvement in Gaming profitability from the financial year ending March 2028 onward. It also notes that GAN and Stakelogic are consolidated with a three-month reporting delay.
Pachislot and pachinko provided a significant earnings contribution during the first half. Total segment sales, including intersegment transactions, increased 17.1% to ¥49.1 billion, while ordinary income rose 331.6% to ¥15.4 billion. Smart Pachislot Lycoris Recoil exceeded its sales plan, and additional sales of Smart Pachislot Kabaneri of the Iron Fortress: The Battle of Unato also supported performance.
The company nevertheless identified regulatory approvals as a constraint on the pachislot release schedule, with approvals remaining at a low level across the industry. Its planned pipeline includes further Hokuto No Ken products. Entertainment Contents, meanwhile, recorded lower sales, although catalogue games, downloadable content, subscription licensing and amusement machines helped performance exceed the company’s expectations for the period.
Sega Sammy maintained its full-year forecasts of ¥510 billion in net sales, ¥44.5 billion in operating income and ¥32.5 billion in profit attributable to owners of the parent. Its second-half plans include major entertainment releases and additional pachislot and pachinko launches, while the Gaming division continues restructuring its acquired online businesses and expanding its established machine operation.
