Sega Sammy Reports $131.7M Q1 2014 Profit

Sega Sammy Reports $131.7M Q1 2014 Profit

by July 31, 2013

In Consumer Business, “Market for Packaged Games Softened”

There is good news to report for the parent company of Sega, Sega Sammy Holdings.  Overnight, the mothership reported quarterly earnings, and they showed an overall net income, or bottom line profit of some ¥12.9 billion yen for the quarter that ended on June 30th, or $131.7 million.  That is a more than 400 percent profit jump versus the first quarter of FY2013.  The profit was earned on total sales of ¥90.7 billion, or $922.3 million.  That is also an increase year over year.

In Consumer Business, the division Sega is a part of, the news was also fairly positive.  The division turned a quarterly profit of ¥39 million–a little less than $400,000–but that’s better than the loss incurred in Q1 2013.  The profit was on sales of $191.1 million, a jump of more than 25 percent.

Sega Sammy’s quarterly earnings statement explains the health of Consumer Business further:

In the home video game software industry, demand expanded in the market for digital games geared toward social networking services (SNS) and smartphones, while the market for packaged games softened.
In the consumer business, the Group launched titles such as “Company of Heroes 2” in the packaged game software field. However, a year-on-year decline in total volume of packaged software sales to 1,210 thousand copies, which includes 370 thousand copies in the U.S., 570 thousand copies in Europe, and 250 thousand copies
in Japan.
On the other hand, performance remained favorable in the field of digital game software for mobile phones, smartphones, and PC downloading, with the client distribution number for the online RPG “Phantasy Star Online 2” on PS Vita exceeding 500 thousand for downloaded and packaged versions after three months since launching the service. Among titles for smartphones, “Puyopuyo!! Quest” continues to perform robustly, exceeding 2 million downloads cumulatively as of June 2013.

Domestically, Sega Sammy stock is up about two thirds of a percent as of this article’s publication.  In Japan, the stock took about a one and a half percent hit in trading Wednesday.