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Pachinko Slots help Sega-Sammy achieve a bigger forecast for 2011

September 30, 2010

Sega-Sammy, Sega’s parent company appears to  have adjusted it’s forecast for the upcoming fiscal year, the details can be found on a PDF report that the company provided on their corporate website:

[Reasons for the adjustment]
(1) First half of the year ending March 31, 2011
In the pachislot and pachinko machines business, with pachislot machines in operation being on a recovery trend, sales of the Company’s Group products remained robust and pachislot machine sales volume is projected to be about 200,000 units (previously publicized forecast: 180,000 units) in the first half of the year ending March 31, 2011. In addition, efforts to lower costs through the reuse of parts and reduction of parts procurement costs improved the profit margin.
As a result of the above, consolidated net sales of 217,000 million yen (up 12,000 million yen from the previously publicized forecast), operating income of 45,000 million yen (up 11,000 million yen from the previously publicized forecast), ordinary income of 44,500 million yen (up 11,000 million yen from the previously publicized forecast) and net income of 24,500 million yen (up 7,500 million yen from the previously publicized forecast) are projected for the first half of the year ending March 31, 2011.
(2) Whole year of the year ending March 31, 2011
Based on the progression of operating results in the first half of the year ending March 31, 2011, sales volume in the pachislot and pachinko machines business for the year ending March 31, 2011 was revised to about 300,000 pachislot machine units (previously publicized forecast: 210,000 units) and about 360,000 pachinko machine units (previously publicized forecast: 410,000 units), and profit margin is also expected to improve through the reuse of parts and reduction of parts procurement costs.
While the consumer business saw mainly sales of new titles in overseas markets hover at weak volumes, the amusement machine sales business and amusement center operations business are expected to maintain robust operating results.
As a result of the above, consolidated net sales of 410,000 million yen (up 10,000 million yen from the previously publicized forecast), operating income of 65,000 million yen (up 25,000 million yen from the previously publicized forecast), ordinary income of 64,000 million yen (up 25,000 million yen from the previously publicized forecast) and net income of 37,500 million yen (up 15,500 million yen from the previously publicized forecast) are projected for the year ending March 31, 2011.

Sorry for this long technical mumbo-jumbo, but to put it in perspective, the Pachinko slots machines are a big part of Sammy’s bussiness, so seeing an improvement is good for Sega’s financial future,methinks.

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