SEGA Returns to Profitability in Q2 Financial Results
Boxed game product in decline, bit digital picking up the slack.
Things are looking slightly brighter for SEGA this morning, as the company posted some reassuring financials for its second quarter.
For the period ending June 30 2012, revenues were up 7.1 per cent year-on-year at ¥69.9 billion (£569m) and net profits were ¥2.5 billion (£20m) compared to a ¥2.2 billion (£18m) loss for the same period last year.
The boost did not seem to come from the company's packaged sales, however. SEGA game sales totalled at 1.34 million units for the quarter, a year-on-year decline that saw a drop of 7 per cent in revenue for the division. It might have something to do with the fact that its only release in this period was London 2012: The Official Video Game of the Olympic Games.
SEGA has been undergoing restructure in its Western operations - a process that began in April following a near-catastrophic fiscal report. The effects of the changes have yet to be truly felt, with the company switching focus from boxed product to digital and mobile. It will also be leveraging its most popular IP, including Sonic and Football Manager, much more in the future.
In its report, the company said that, "We will cut fixed costs and concentrate efforts on sales of strong titles that are expected to continue posting solid earnings." It also noted that digital sales were picking up, with Phantasy Star Online 2 "enjoying brisk sales" since its July 4th release.
For the period ending June 30 2012, revenues were up 7.1 per cent year-on-year at ¥69.9 billion (£569m) and net profits were ¥2.5 billion (£20m) compared to a ¥2.2 billion (£18m) loss for the same period last year.
The boost did not seem to come from the company's packaged sales, however. SEGA game sales totalled at 1.34 million units for the quarter, a year-on-year decline that saw a drop of 7 per cent in revenue for the division. It might have something to do with the fact that its only release in this period was London 2012: The Official Video Game of the Olympic Games.
SEGA has been undergoing restructure in its Western operations - a process that began in April following a near-catastrophic fiscal report. The effects of the changes have yet to be truly felt, with the company switching focus from boxed product to digital and mobile. It will also be leveraging its most popular IP, including Sonic and Football Manager, much more in the future.
In its report, the company said that, "We will cut fixed costs and concentrate efforts on sales of strong titles that are expected to continue posting solid earnings." It also noted that digital sales were picking up, with Phantasy Star Online 2 "enjoying brisk sales" since its July 4th release.
Companies:
SEGA
Read More Like This