Sega Sammy (6460) Q1 2027 earnings summary

Executive summary

• Net sales for Q1 FY2027/3 rose 17.3% year-over-year to ¥95.0B, with operating income improving to ¥2.38B from a loss of ¥0.5B, and adjusted EBITDA reaching ¥7.85B, all exceeding expectations.

• Profit attributable to owners of parent rebounded to ¥2.17B from a loss of ¥3.39B in the prior year.

• All business segments started above or in line with expectations, with strong performance in Entertainment and Pachislot & Pachinko, and steady growth in Gaming.

Financial highlights

• Adjusted EBITDA for Q1 FY2027/3 surged 437% year-over-year to ¥7.85B.

• ROE improved to 8.9% from -1.6% in the previous year.

• Cash and deposits decreased by ¥12.1B sequentially, mainly due to dividend and bonus payments.

• Equity ratio increased to 58.2%, up 1.7 points from March 2026.

• Comprehensive income reached ¥5.76B, up 98.8% year-over-year.

Outlook and guidance

• Full-year sales forecast raised or maintained at ¥510.0B, with operating income projected at ¥44.5B and profit attributable to owners of parent at ¥32.5B.

• Major new game and animation titles are scheduled for release from Q2/Q3 onward, with promotional activities underway.

• Gaming segment aims to rebuild for profit improvement from FY2028/3.