Sega Sammy More than Triples Q1 Profit

Sega Sammy More than Triples Q1 Profit

by July 31, 2019

After digital game releases appeared to be an albatross in FY 2019 for Sega Sammy, the company’s first quarter 2020 earnings released this week paint a much more positive and healthy picture for the Entertainment Contents Division, as well as the company in whole.

Operating income, or profit, jumped in whole from $8.6 million to $31.3 million for the quarter, on revenue increases of just over five percent, to $670 million.

Entertainment contents, or the division Sega’s games and arcade titles are a part of, are the company’s strongest division. Revenue for the quarter jumped about 18 percent to almost $490 million. Profit in just this division nearly tripled during the period that ended on June 30th, from $15.4 million to $45.6 million.

Sales of both digital and physical titles were on the increase. Sega did note physical re-releases were starting to slow, but that on the whole, physical was the strongest component with more than $135 million in sales. Digital also rebounded, accounting for nearly $110 million in sales for the quarter.

Specific sales went largely not cited, but Total War: Three Kingdoms, Team Sonic Racing, and Judgment accounted globally for 2.3 million combined units sold, according to the company report. TW: Three Kingdoms in particular was called out for its strong success of selling a million copies in under a week’s time. Sega also anticipates the launch of the Mega Drive Mini and Mario and Sonic at the Olympic Games Tokyo 2020 to be strong performers in Q2 and beyond.