SEGASAMMY Q3 results: 450M$ Profit + Games shipments

[Suzuki Yu]

SEGASAMMY just reported the results for the 9 months period of FY2012.
and even though the Consumer segment is losing money so far the other segments Pachinco&Pachislots/Arcade/Amusement Centers are doing very well for the company.
so overall they recorded a net income of ¥34,384 million (about 450M$)

During the first three quarters of the fiscal year ending March 31, 2012, although concern for the availability of parts and materials due to various impacts in the aftermath of the Great East Japan Earthquake and Thai floods is improving, some uncertainty prevailed in the Japanese economy from the effects of the struggle to cope with an expected prolonged shortage of electricity supply, and confusion in the global financial markets, mainly in Europe.
In this climate, the pachislot and pachinko industry remained solid due to recovery of the devastated supply chain resulting from the Great East Japan Earthquake, a number of successful products in the market, and recovery in the operating ratio at pachinko parlors.
In the amusement machine and amusement center industry, the market stays solid thanks primarily to consumer behavior turning to more accessible entertainment.
In the home video game industry, demand was generally weak in the U.S. and European markets due to the headwinds such as sluggish personal consumption. The Group needs to adapt to a changing business environment in which the market demand for new content geared toward social networking services (SNS) and smartphones is expanding.
In this business environment, net sales for the first three quarters of the fiscal year ending March 31, 2012 amounted to ¥311,682 million, an increase of 0.5% for the same period in the previous fiscal year. The Group posted an operating income of ¥64,360 million, an increase of 2.2% for the same period in the previous fiscal year. Due to the factors including gain on negative goodwill and the settlement payment for patent licensing, the Group recorded a net income of ¥34,384 million, a decrease of 6.6% for the same period in the previous fiscal year

game shipments in Q3
Mario & Sonic at the London Olympic Games - Wii Only 2.390 Million copy
Sonic Generations - 360/PS3/PC/3DS 1.630 Million copy
HATSUNE MIKU Project DIVA extend - PSP 290 thousands of copies
strong download titles
KINGDOM CONQUEST
Ryu Ga Gotoku Mobile

Arcade Sales in Q3
StarHorse3 Season I　A NEW LEGEND BEGINS 3.3 Billion Yen
WORLD CLUB Champion Football Intercontinental Clubs Series 3.1 Billion Yen
SEGA NETWORK MAHJONG MJ5 2.7 Billion Yen

http://www.segasammy.co.jp/english/pdf/release/20120203_tanshin_hosoku_final_e.pdf
http://www.segasammy.co.jp/english/pdf/release/201203_3q_tanshin_final_e.pdf

[ROJM]

Here's so good news with Sega's main bread and butter the arcades....

TOKYO -- Sega Sammy Holdings said its revenues and profits, representing all divisions, were down slightly for the first nine months of the current fiscal year (April 2011 through December 2011). Compared with the same period in 2010, companywide revenues stood at $4 billion, down half a percent, while profit fell 6% to $449 million.

Sales of slot-type machines such as pachinko remained steady, as did domestic Japanese sales of amusement equipment and home videogames. The company's weak spot remains videogame sales (both coin-op and consumer) in the U.S. and Europe.

Although company officials termed the amusements market "solid," they also reported net sales down 11.3% and operating income down 40.2% compared with the first nine months of 2010.

The company said final projections for fiscal 2011, ending March 31 of this year, are expected to show revenues down nearly 11% to $5.8 billion and profits down 8.5% to $498.7 million year-over-year.

Sega's Japan-based arcade chain held steady, with sales ticking up one-half of one percent for the period. Sega closed six arcades last year, operating 247 arcades by the end of 2011.

Sega Amusements USA, the company's American coin-op division, announced a consolidation and reorganization last July in an effort to cut costs and boost profitability.

Considering what happened last year ..something i would never want to experience again, this is very good. i suspect the earthquake and the tsunami affected the consumer side of things more than the arcade side of things in the japan market forecasts for Sega.