Sega Sammy Hldgs Last FY Group Net Profit Y50.6B
Tuesday May 24, 5:31 AM EDT
TOKYO (Dow Jones)--Sega Sammy Holdings Inc. (6460.TO) said Tuesday that it posted a group net profit of Y50.6 billion in the fiscal year ended March 31 as it racked up group sales of Y515.67 billion.
Comparable figures from the year earlier weren't available. It was the first time the firm reported full-year earnings after video game software developer Sega and pachinko pinball game equipment maker Sammy integrated their operations under the holding company last October.
For this fiscal year through March 2006, the entertainment company expects its group net profit to rise 11% to Y56 billion and anticipates its group sales will increase 10% to Y567 billion.
Sammy, one of the two merged entities, posted a net profit of Y48.58 billion last fiscal year, up 51% from a year earlier, as sales of pachinko slot machines rose to 677,000 machines from 591,000 machines on robust sales of pachinko slot machines featuring the animation character "Hokuto No Ken".
The Sega unit's net profit dropped 80% to Y1.77 billion last fiscal year partly as its consumer division including sales of video game software posted a steeper operating loss amid tough domestic competition.
The holding company expects a stronger net profit this fiscal year as it plans to launch new pachinko game products, while it expects demand for computer game software to become solid as game console makers have launched new portable consoles and more new video game consoles are expected to be rolled out.
The holding company said in a separate press release that it aims to boost its group net profit to Y85 billion in the fiscal year to March 2007, a 52% jump from the level it's targeting for this fiscal year. That is up from the Y68 billion target it set last October.
Sega Sammy said it will then attempt to further lift its net profit to Y90 billion in the fiscal year to March 2008. To meet these targets, it said it will beef up its development of new pachinko machines.
The entertainment business firm will also widen its lineup of arcade game machines and aims to strengthen overseas sales of such machines.
-By Yoshio Takahashi, Dow Jones Newswires; 813-5255-2929; yoshio.takahashi@ dowjones.com
-Edited by Chris Gallagher and Hugh Lawson
Dow Jones Newswires
05-24-05 0531ET
