Sega Sammy profits take a tumble

[ROJM]

Sega Sammy profits and revenue take a tumble

Japanese gaming giant Sega Sammy Holdings has reported a fall in both revenue and profit for the six months ending September 30th.

Revenue fell to £1.2bn, a decline of 29.9 per cent. Net profit fell 83.7 per cent to £30m.

Unsurprisingly the Japanese earthquake was the chief culprit in the decline, with the disaster “devastating” the supply chain for its pachinko arcade operations.

The consumer games division saw revenue fall 13.1 per cent year-on-year to £269.5m. Operating losses increased by almost a factor of five to £47.7m.

In total the unit shifted 4.8m games units, with Europe proving the most successful region accounting for 2.12m of that total. Releases in the period such as Captain America were described as “slow” and “affected by adverse market conditions”.

“In the home video game industry, demand was generally weak in the US and European markets due to the headwinds such as sluggish personal consumption,” the firm stated.

“The Group needs to adapt to a changing business environment in which the market demand for new content geared toward social networking services and smartphones is expanding.”

Mon Oct 31, 2011 3:01am EDT


Oct 31
                   SEGA SAMMY HOLDINGS INC.
                   CONSOLIDATED FINANCIAL HIGHLIGHTS
    (in billions of yen unless specified)
               6 months ended  6 months ended  Full year to 
Full year ended
                  Sep 30, 2011    Sep 30, 2010    Mar 31, 2012
  Mar 31, 2011
                  LATEST          YEAR-AGO        COMPANY     
  YEAR-AGO                     H1 RESULTS      H1 RESULTS   
FORECAST        RESULTS     Sales             152.60       
217.81          440.00                                     
(-29.9 pct)     (+41.1 pct)        (+10.9%)             
Operating          15.18           46.85           77.00
                               (-67.6 pct)                   
  (+12.0%)                Recurring          14.72         
46.10           75.50                                     
(-68.1 pct)                        (+10.8%)                Net
               3.98           24.35           38.00
                          (-83.7 pct)                       
(-8.5%)                EPS                   Y15.79       
Y96.66         Y151.03                 Diluted      EPS
         Y15.77          Y96.66                               
Annual div                                            Y40.00
      Y40.00
  -Q2 div              Y20.00          Y20.00
               -Q4 div                              Y20.00
    Y20.00

   

I'd expect the profits will come in by the end of march once their big titles are released, but of course that would only make it moderate if the other divisions are losing money and depending how well the consumer side does well.

[Sharky]

So did they make a profit or a loss at the end of the day, I'm completely clueless when it comes to this kind of stuff...

If they are still profitable then it's fantastic to be honest, So many Japanese companies are making losses including Nintendo who made such a massive loss recently.

[Aki-at]

So did they make a profit or a loss at the end of the day, I'm completely clueless when it comes to this kind of stuff...

If they are still profitable then it's fantastic to be honest, So many Japanese companies are making losses including Nintendo who made such a massive loss recently.

Made profits of about £32/$51 million not that what I just posted is going to be relative, currencies are very volatile at the moment.

[jonboy101]

Especially the yen. It's supposed to be appreciating against the dollar really seriously.

[ROJM]

So did they make a profit or a loss at the end of the day, I'm completely clueless when it comes to this kind of stuff...

If they are still profitable then it's fantastic to be honest, So many Japanese companies are making losses including Nintendo who made such a massive loss recently.

its a loss,whether the main releases make their money or not the final report will post moderate earninings. The impact is being made by the operating losses which will impact on the final report next year.
@Aki you do know that shipment and retail sales are totally different things,right? So RON shipped 200 000 units doesn't mean it sold that many at retail. We just have to look at VANQUISH for that. If it continues to receive more orders ie have more shipments by the final report than maybe we can judge that game to be succesful,but i doubt it performed well at retail.