Sega Sammy Holdings reported weaker-than-expected financial results for the six months ending September 30, 2025. 

Delays, Acquisitions, and Slow Video Games Sales 

Net sales dropped 5.0% year-on-year to JPY201.1 billion ($1.31 billion), while Adjusted EBITDA fell sharply by 54.3% to JPY16.0 billion ($104 million). 

Operating income fell 69.3% to JPY10.1 billion ($65.8 million), and profit attributable to shareholders plunged 90.9% to JPY2.75 billion ($17.9 million).

The company, born in October 2004 through the management integration of SEGA, a creator of popular innovative products and developer of industry-first products, and Sammy, attributed much of the decline to delays in releasing new machines in its pachislot and pachinko businesses due to approval processes. 

Other culprits were tied to the losses related to its acquisitions of busiess-to-business online casino companies StakeLogic B.V. and GAN Limited, along with slower video game sales.

372% Rise in Gaming Division Sales

Despite the overall dip, Sega Sammy highlighted strong growth in its gaming division, which includes both its land-based and online casino supplier arm, Sega Sammy Creation, and its 45% stake in Korea’s Paradise City integrated resort. 

The standout performer in this segment was its US slot game “Railroad Riches,” which the company said “continued to perform well in terms of utilization and contributed to solid sales growth.”

Gaming was the only segment to show year-on-year growth, with sales jumping 372% to JPY8.5 billion ($55.4 million). Sega Sammy said it plans to focus on selling its existing popular titles in North America while preparing new releases designed for its newly developed slim cabinet, Genesis Nova, which offers more efficient installation. 

“Railroad Riches” has already been installed in this new format as part of the rollout.

For StakeLogic and GAN, the company is working on business revitalization programs aimed at expanding operations and improving profitability. “The impact on the full-year forecast is currently under review and will be disclosed once the review is complete,” Sega Sammy said.

The company also pointed to Paradise City in Incheon, which hit record levels for both drop amounts and hotel occupancy in August. “The Group expects to contribute to profits through equity-method earnings driven by continued strong casino sales, centered on Japanese VIP and mass customers,” Sega Sammy added.