Sega Sammy Holdings reported a 298.6% increase in net profit for the six months ended September 30, 2026, as stronger results from its pachinko and pachislot operations supported group performance and gaming revenue almost doubled year-on-year.
The Japanese entertainment and gaming group recorded net sales of JPY212.58 billion (US$1.34 billion) for the April-to-September period, representing a 5.7% increase from the corresponding six months of the previous financial year. Net profit attributable to owners of the parent reached JPY10.93 billion, compared with a loss of approximately JPY7 billion in the previous six-month reporting period.
Operating income increased 42% to JPY14.3 billion, while adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) climbed 54% to JPY24.58 billion.
Sega Sammy attributed the improvement to higher operating income from its Pachinko and Pachislot Machines business, increased ordinary income and the absence of significant extraordinary losses recorded in the comparable period.
“Results exceeded expectations across all segments,” the company said in its financial presentation (pdf).
The group also reported that its established gaming operations maintained steady performance, while pachinko and pachislot sales benefited from stronger demand.
Gaming Revenue Nearly Doubles Despite Wider Operating Loss
Sega Sammy’s Gaming segment generated approximately JPY16.36 billion in sales during the six-month period, an increase of 91.1% year-on-year. The division includes gaming equipment supplier Sega Sammy Creation and the group’s 45% investment in South Korean integrated resort Paradise City.
Gaming machine sales across North America and Asia reached 784 units, compared with 633 in the first half of the previous financial year, representing growth of 23.9%.
The company identified Railroad RICHES and Super Burst as key contributors to equipment sales, which remained solid during the reporting period. Sega Sammy also introduced Bonanza Bros. Golden Heist in September, adding another title to its gaming machine portfolio.
Despite the stronger revenue, the segment recorded an operating loss of JPY3.9 billion. The company linked the deterioration to the consolidation of GAN and Stakelogic B.V., both acquired during the financial year ended March 31, 2026.
Sega Sammy plans to address the performance of both businesses through turnaround initiatives. GAN is working to reduce fixed expenses and improve operational efficiency while moving its operations to a new platform intended to support future development.
Stakelogic is also pursuing cost reductions and organisational changes. Its strategy involves concentrating on more efficient operations and transferring established gaming machine intellectual property into online formats to develop additional revenue opportunities.
The group described these initiatives as part of its broader Gaming Business Omnichannel strategy.
For its land-based gaming machine operations, Sega Sammy intends to strengthen the performance of existing products while introducing new titles, particularly in North America. The company also plans to expand lease-based equipment sales, attract additional customers and obtain licences in new markets.
Paradise City delivered a mixed performance during the half-year. The South Korean resort recorded a quarterly casino drop amount that reached a record high in the second quarter. However, its contribution to Sega Sammy’s equity-method earnings declined compared with the previous year.
The company partly attributed the lower contribution to increased expenses following the opening of the resort’s new Grand Hyatt hotel in March.
Pachinko and Pachislot Operations Drive Group Performance
The Pachinko and Pachislot Machines segment provided an important contribution to Sega Sammy’s improved financial results.
Revenue from the division increased 17.2% to JPY49 billion (approximately US$309 million) during the six months ended September 30. The company said performance exceeded its expectations, supported by the release of new products.
Several additional titles are scheduled for installation, although Sega Sammy acknowledged that regulatory approvals for pachislot machines remain limited across the Japanese industry.
The results contrasted with the group’s Entertainment Contents business, which includes video games. Revenue from that division declined slightly to JPY145.1 billion (approximately US$916 million).
Sega Sammy’s broader portfolio also includes home entertainment products and investments in gaming-related businesses. Its operations span the Japanese pachinko and pachislot market, international gaming equipment sales and its investment in Paradise City.
The company said its existing businesses had performed steadily during the reporting period, with stronger pachinko and pachislot sales helping the group deliver results above expectations.
Sega Sammy Maintains Full-Year Financial Targets
Looking ahead, Sega Sammy expects to generate net sales of JPY510 billion for the financial year ending March 31, 2027. Its current forecast also anticipates net profit of JPY32.5 billion.
The targets come as the group works to improve the profitability of its recently acquired gaming businesses while maintaining growth in its established operations.
GAN’s platform migration and cost-reduction programme will form part of its efforts to improve operating performance. Stakelogic, meanwhile, intends to focus on selected products and adapt existing gaming machine intellectual property for online distribution.
In the equipment business, Sega Sammy will continue pursuing sales growth in North America and other international markets, supported by its existing titles and new releases.