Sega Sammy Reports FY26 Loss After Acquisitions

Sega Sammy Holdings reported a net loss attributable to owners of the parent of JPY5.76 billion (US$36.5 million) for the financial year ended 31 March 2026, reversing from the JPY45.0 billion profit recorded in the previous year.

The company said the decline was largely linked to the consolidation of acquired businesses including Rovio Entertainment and Stakelogic B.V.. Despite the annual loss, the result represented an improvement from the JPY16.9 billion loss reported during the first nine months of the financial year.

According to Sega Sammy, impairment losses connected to goodwill and intangible assets related to Rovio, alongside goodwill and property, plant and equipment tied to Stakelogic, significantly affected the group’s final earnings.

Sega Sammy acquired Rovio, the company behind Angry Birds, in 2023. The company had previously stated that it would reduce merger and acquisition activity until Rovio’s performance improved.

The annual report showed that while the acquisitions expanded Sega Sammy’s reporting base, impairment-related expenses weighed heavily on profitability. The shift from a large profit in the previous year to a loss in FY26 reflected the financial impact of the newly integrated businesses.

Within the company’s gaming segment, revenue increased significantly following the consolidation of GAN Ltd and Stakelogic. Segment revenue rose 369% year-on-year to JPY25.3 billion (US$160 million), although the division still posted a loss of JPY18.4 billion (US$117 million).

Sega Sammy stated that gaming machine sales through Sega Sammy Creation reached record levels, supported by demand for the US-focused slot title Railroad Riches.

The company also highlighted strong results from Paradise City, the integrated resort in which Sega Sammy holds a 45% stake. The resort recorded its highest sales and profit levels since opening, supported by strong drop volumes from Japanese VIP customers during the January to December 2025 period.

On a consolidated basis, Sega Sammy reported revenue of JPY487.5 billion (US$3.09 billion), representing a 13.7% increase compared to the previous year.

The group stated that although revenue growth remained strong, impairment costs and losses within certain business segments reduced overall profitability, placing greater focus on the management and performance of recently acquired operations.