Things have been good for SEGA’s profits this last year. First, SEGA reported a profit on it’s third quarter statement back in February. Then, in August, SEGA reported 7 billion yen in profit for it’s first quarter of it’s 2010-2011 fiscal year. All of this great news has resulted in SEGA’s stock price hitting it’s highest price since 2007, where it’s stayed close to ever since.
The good times keep on coming. While video game giants like Nintendo continue to lower their own fiscal year forecast, SEGA has now raised it’s overall sales forecast for its entire fiscal year, ending March 31st 2011, from $400 billion yen ($4.7 billion) to $410 billion yen ($4.9 billion). The profit guidance forecast has gone up from 22 billion yen ($264 million), to 36.5 billion yen ($437 million). This rise in revenue and profits has been brought on by strong sales SEGA Sammy’s Pachinko/Pachislot division, which is now expected to sell 660,000 units, up from the originally anticipated sales of 620,000 units.
SEGA’s amusement machine and amusement center businesses have helped offset relatively weak sales in it’s consumer division, which SEGA credits to the sales of titles overseas. According to SEGA:
“While the consumer business saw mainly sales of new titles in overseas markets hover at weak volumes, the amusement machine sales business and amusement center operations business are expected to maintain robust operating results.”
Upon this news, SEGA’s stock price went from $3.87 to a new 52 week high of $4.03. The price is now holding steady at around $3.98, though this will likely fluctuate throughout the day. As a stockholder, this news makes me very happy. I am very glad I didn’t sell my stock back in July, as it definitely looks like the good news is going to keep on coming for awhile.
For a more in depth look at this news, check out the source, Gamasutra.Ad: