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Sega Sammy sees 6% growth in Japanese mobile game revenues in FY16 to $375 million

But overall company sales down 5%
Sega Sammy sees 6% growth in Japanese mobile game revenues in FY16 to $375 million

Sega Sammy (TYO:6460)  has announced its FY16 financials, which covers the 12 month period ending 31 March 2016.

Net sales were $3.2 billion, which was down 5% compared to 2014.

Profit was $49 million, compared to a loss in 2014.

As with many Japanese companies, Sega has various business units including Pachinko games, Leisure activities (hotels, golf resorts and casinos), as well as its core computer games business (which also includes animation and toys).

Games generated 58% of Sega's sales in FY16, or around $1.9 billion.

Mobile on the up

Sega didn't officially break out how much mobile games contributed to overall sales but thanks to some figures hidden away in its financials, we can make some calculations.

For example, during the past 3 months, its games had 7.7 million monthly active players in Japan, who each spent around ¥1,500 during the quarter.

This works at around $104 million, and is up 19% compared to the previous quarter.

Worked up for the entire FY16, Sega generated around $375 million from mobile games in Japan, up 6% year-on-year; nice but nothing spectacular.

That compared to a $340 million prediction from Sega Networks, which runs all of Sega's F2P games business across mobile and PC.

Key Japanese titles are Chain Chronicle - Kizuna no Shintairiku, Puyopuyo!! Quest and Hortensia SAGA, which generate sales of more than $4 million per month.

Sega has 49 live free-to-play games and plans to add another seven during FY17.


And more generally, recent times have been difficult for the company, especially in the west. 

It's gone through a serious restructuring process especially in the US, where it lost 300 jobs in early 2015, which was followed by more job loss as it shut down San Francisco PC studio Three Rings.

In future, it hopes to generate more business via its Noah Pass mobile advertising network, which reaches 12 million active players a month.

It also has high hopes for its southeast Asian-focused goPlay mobile platform.