# Sega Sammy Raises Revenue Outlook, Announces IR Drag

Japanese entertainment giant Sega Sammy Holdings Inc. has raised its earnings forecast for the year ending March 31, 2022. On Thursday, the company said it revised its earnings forecast based on higher-than-expected revenue from its entertainment content business and its Pachislot and Pachinko machine businesses.


However, the group said it expected a drop in revenue from its integrated resort (IR) business as COVID-19 infections resurface across the region.

In its latest forecast, Segasami projected net sales of 31 billion yen ($2.71 billion) through March 31, up from its previous forecast of 305 billion yen. Net sales forecasts for its entertainment content business and Pachislot and Pachinko segments were raised by 1.1% and 13.1%, respectively.

However, the company said net sales from its resort business were expected to be 8.5 billion yen in the fiscal year ending in March, down from a previous forecast of 9.5 billion yen. The sector is now expected to report a loss of 7 billion yen, up from a previous forecast of 6.5 billion yen.

Segasami is a partner at Paradise City Casino Resort (pictured) near Incheon International Airport in Korea. The facility's gaming area is only available to foreigners - many of its customers are Japanese, according to corporate information.

Sega Sammy also runs Phoenix Segaai Resort, a non-gaming resort in Japan located in Miyazaki Prefecture. The resort includes a total of 950 hotel rooms, golf courses, convention centers, and other entertainment facilities.

Segasami said on the 3rd, "Customer attraction to these facilities is expected to be sluggish in the fourth quarter of this fiscal year (October-December) due to the re-expansion of COVID-19. As a result, net sales are expected to decrease and current losses are expected to increase from previous forecasts."

Groupwide, the group expects operating profit of 31 billion yen for the year ended March 31, up from a previous estimate of 23.3 billion yen, and net profit of 26.5 billion yen, up from a previous estimate of 15.5 billion yen.

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