Sega Sammy Posts FY26 Loss after Impact from Recent Acquisitions

Sega Sammy Holdings reported a net loss attributable to owners of the parent of JPY5.76 billion, or US$36.5 million, for the year ended 31 March 2026. The result marked a sharp reversal from the JPY45.0 billion profit recorded a year earlier, with the group saying the shift was tied to the consolidation of acquired companies Rovio and Stakelogic B.V.

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Even so, the full-year loss was far narrower than the JPY16.9 billion loss reported through the first 9 months of the financial year. Sega Sammy said the FY26 result was driven by impairment losses on goodwill and other intangible assets linked to Rovio, as well as goodwill and property, plant, and equipment related to Stakelogic.

Acquisition Costs Hit Profit

Sega Sammy purchased Angry Birds maker Rovio Entertainment in 2023. Rovio Entertainment’s previous financial results already indicated the impact on its business because of the acquisition, as Sega Sammy stated at the time that it had put the brakes on M&A activity until Rovio improved its results.

The latest annual numbers show that the impact of those purchases continued to be felt across the group’s accounts. While the acquisitions expanded the company’s financial reporting base, they also brought impairment charges that weighed on the bottom line. The move from a large profit in the previous year to a loss in FY26 highlights the extent to which the new assets affected the group’s earnings profile.

Gaming Segment Expands

Sega Sammy’s gaming-related segment saw substantial growth in FY26, helped by the inclusion of GAN Ltd and Stakelogic in its financials. Segment revenues jumped 369% compared to last year to reach JPY25.3 billion, or US$160 million. Although there was a huge jump in revenues for the segment, it still recorded a loss of JPY18.4 billion, or US$117 million.

The firm indicated gaming machine sales through Sega Sammy Creation reached new highs amid sales of gaming machines related to the US-focused slot game Railroad Riches. As such, the performance of the segment strengthened its financial position despite the loss reported by the unit.

The results suggest a mixed picture for the group’s gaming business. Sales increased significantly, but the earnings contribution was offset by costs and impairment charges connected to the newly consolidated businesses. The segment’s growth did not translate into profitability at the group level during the year.

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Paradise City Reaches Highs

Sega Sammy also pointed to strong performance at Paradise City in Incheon, where it holds a 45% stake. The Korean integrated resort recorded all-time highs, supported by a high level of drop amounts, particularly from Japanese VIP customers.

The company said that for the period from January to December 2025, both net sales and each stage of profit at Paradise City reached all-time highs since the property opened. That performance offered a bright spot within the broader group results and helped balance some of the pressure seen elsewhere in the business.

Paradise City’s contribution underscores the role of the resort in Sega Sammy’s wider portfolio. While the company’s acquisitions created financial strain at the group level, the resort business continued to deliver strong trading results in the year.

Group Revenue Rises

As for sales figures on a consolidated basis, Sega Sammy had revenues of JPY487.5 billion, which translates to US$3.09 billion, reflecting an increase of 13.7% compared to one year ago. Sega Sammy still claims that its primary business is video and arcade games despite the more diversified set of gaming and entertainment properties within the portfolio.

According to the yearly report, revenue increased steadily for the company in question; however, it could not overcome the losses that came from impairment and negative results at the segment level. Therefore, Sega Sammy finished fiscal year 26 with less profitability and with the emphasis on the management of recently acquired units.

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Source: Inside Asian Gaming