Sega Sammy Reports 93 Percent Profit Fall
TOKYO — Sega Sammy Holdings Inc., formed by the merger between a game-maker and a pinball company, said Friday that net profit fell 93 percent in the most recent quarter due to the dearth of new models of slot machines.
Net income dropped to 779 million yen (US$6.72 million; euro5.28 million) in the April-June quarter, compared with 10.70 billion yen a year earlier, the Tokyo-based company said in a statement.
Sales fell 14.83 percent to 85.72 billion yen (US$734.48 million; euro576.65 million) from 100.53 billion yen.
The drop in earnings was due to the lack of "big titles" in its slot machines during the period, said Sega Sammy spokeswoman Yuri Takehara.
Pachinko _ an upright pinball game _ and slot machine sales fell by 56 percent to 21.81 billion yen (US$188.01 million from 49.83 billion yen.
Under its "scrap and build" policy, Sega Sammy closed 6 amusement centers that were unprofitable in Japan and opened four new amusement centers for the latest quarter, Takehara said. The company was operating 460 amusement centers, as of June 30, it said.
For the fiscal year ending March, Sega Sammy kept its group net profit outlook of 75.00 billion yen (US$646.55 million; euro507.62 million) on group sales of 682.00 billion yen (US$5.88 billion; euro4.62 billion).
Sega Sammy shares closed 2.67 percent lower in Tokyo at 3,650 yen (US$31.47) shortly before the company released its earnings.
Sega, which makes Sonic the Hedgehog games, and Sammy, a pinball maker, merged to form Sega Sammy Holdings Inc. in October 2004.