Sega Sammy Holdings Inc. (TSE: 6460) reported consolidated full-year results for the fiscal year ended March 31, 2026 (FY3/2026) under Japanese GAAP. Revenue rose 13.7% year-on-year to a record ¥487,542 million, up from ¥428,948 million, as the group's three pillars — Entertainment Contents (the Sega games business, including the Sonic franchise), Pachislot & Pachinko (Sammy), and the Resort operations — all contributed to the top line. Operating profit, however, slipped 2.1% to ¥47,128 million from ¥48,124 million, while ordinary profit edged up 2.1% to ¥54,205 million, helped by a ¥5,402 million equity-method investment gain.
A net loss despite positive operating profit
The headline surprise was the bottom line: Sega Sammy swung to a net loss attributable to owners of the parent of ¥5,756 million, a sharp reversal from the ¥45,051 million net profit recorded a year earlier. The loss came despite both operating and ordinary profit remaining firmly positive, reflecting large extraordinary charges booked during the year as the group reshaped its portfolio. Basic earnings per share fell to -¥27.36 from +¥209.79, and ROE turned negative at -1.6%. Comprehensive income dropped 61.6% to ¥16,452 million.
Portfolio reshaping drives the charges
During the year Sega Sammy actively reshaped its consolidation perimeter. The group newly consolidated 37 companies, including the iGaming firm Stakelogic B.V. and 12 others, while deconsolidating GAN Limited and 23 others. This restructuring of the portfolio — adding the Stakelogic iGaming capability while exiting GAN — sat behind the extraordinary charges that turned an otherwise solid operating year into a reported net loss. Equity-method results contributed a ¥5,402 million investment gain at the ordinary-profit line.
Balance sheet and cash flow
Total assets stood at ¥627,388 million and net assets at ¥354,967 million, leaving an equity ratio of 56.5% and book value per share of ¥1,750.15. On the cash-flow statement, operating activities generated ¥25,940 million, investing activities used ¥22,514 million, and financing activities consumed ¥56,623 million — the latter reflecting dividends, debt movements, and the year's capital-return actions. Cash and equivalents finished the period at ¥153,776 million.
Dividend raised; 20 million shares cancelled
Despite the net loss, Sega Sammy lifted its FY3/2026 annual dividend to ¥55.00 per share (¥27 interim + ¥28 year-end) from ¥52.00 (¥25 + ¥27), equivalent to a DOE of 3.1%. (A payout ratio is not shown given the net loss for the year.) The group also pursued aggressive capital management, cancelling 20 million shares — cutting shares outstanding from 241,229,476 to 221,229,476 — while treasury shares fell from 27.4 million to 18.6 million.
FY27 guides a return to profit
For FY3/2027, management guides revenue of ¥510,000 million (+4.6%), operating profit of ¥44,500 million (-5.6%), and ordinary profit of ¥47,500 million (-12.4%), but crucially a return to a net profit of ¥32,500 million after this year's loss, with EPS of ¥160.36. The annual dividend is guided to be held at ¥55.00 (¥27 interim + ¥28 year-end). With the extraordinary charges from the portfolio reshaping behind it, the guidance signals management's expectation that underlying operating performance will once again flow through to the bottom line.
| Metric | FY3/2026 | FY3/2025 | YoY |
|---|---|---|---|
| Revenue (¥M) | 487,542 | 428,948 | +13.7% |
| Operating profit (¥M) | 47,128 | 48,124 | -2.1% |
| Ordinary profit (¥M) | 54,205 | 53,114 | +2.1% |
| Net profit attrib. (¥M) | -5,756 | 45,051 | Loss |
| EPS (¥) | -27.36 | 209.79 | Loss |
| Annual dividend (¥) | 55.00 | 52.00 | +5.8% |
| FY27 net profit guidance (¥M) | 32,500 | — | Return to profit |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.