IT 100 Special Report 2006 >

  THE INFOTECH 100 COMPANIES
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88

Sega Sammy Holdings

(TSE: 6460)

Japan

Sega Sammy Holdings, a Japanese video game and pachinko slot-machine maker, is a new addition to the IT 100 list. Formed by the merger of Sega and Sammy in 2004, the company is a powerhouse in entertainment and games. The company is a sprawling conglomerate that owns a hodgepodge of movie and animation studios, golf courses, arcade centers, and amusement parks. The alliance has been a godsend for Sega, which suffered after an unprofitable venture selling the Dreamcast video game machine forced it to pull out of the console business several years ago. Now, Sega Sammy's pachinko and "pachislot" machines—part video game, pinball, and slot machine, and popular among Japanese adults—account for the lion's share of profits. In the fiscal year ended Mar. 31, sales rose 7%, to $4.93 billion, and net income jumped 30%, to $590 million. Its stock has gained around 35% in the past 12 months, and return on equity is more than 20%. One encouraging sign has been its video game unit's return to profitability. That business had struggled: In the past two years, Sega hasn't produced a Top 10 title in either Japan or the U.S. and the draw of its Sonic the Hedgehog franchise, once a reliable profit machine, has weakened.

Company Info

2005 Rank

Not Ranked

Sales*
($ Millions)

4,932.4

Sales Growth
(over prev. year)

7 %

Profits*
($ Millions)

590.4

Return on Equity

20.9 %

Total Return on Sales (12-mo.)

44.5

Share Price
As of 5/31/06

39.67

CURRENT
MARKET INFO

TSE: 6460

No. of Employees

Industry Computers & Peripherals
COMPANY WEB SITE >
*Trailing 12 months
Stock price data as of 5/31/06
DATA: Standard & Poor's Compustat

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Company Snapshot

Sega Sammy Holdings, through its wholly owned subsidiaries, SEGA and Sammy, operates as an entertainment company in Japan. It primarily engages in the manufacture and sale of arcade video games, medal games, electronic game machines, prize games, vending machines, change machines, and IC boards. The company also engages in the development, manufacture, and marketing of pachinko, pachislot, arranged-ball, and jankyu machines, and related equipment. It is also involved in amusement arcade operations, and amusement arcade equipment sales. In addition, the company markets, leases, and imports and exports game equipment. Sega Sammy Holdings is headquartered in Tokyo, Japan.


Data provided by Capital IQ
 
Hajime Satomi

Hajime Satomi

Chairman and Chief Executive Officer

Hajime Satomi serves as chairman and chief executive officer of Sega Sammy Holdings and also served as its president. Satomi has been chairman and director of Sega since February, 2004. He serves as director of Sega Sammy Holdings. Satomi also serves as a director of Sammy Corp.



Executive Data provided by Capital IQ