Japan’s Sega Sammy Holdings has announced that it will pause large-scale mergers and acquisitions following a ¥16.9 billion (about $110 million) loss attributable to owners of the parent for the nine months ended 31 December 2025.
The company said underperformance in key business units and impairment charges tied to recent acquisitions have prompted a shift toward stabilising the business rather than pursuing further deals.
Sega Sammy reported that consolidated sales rose 4 % year-on-year to ¥335.2 billion ($2.19 billion), but operating income declined by nearly 59 % to ¥23.8 billion ($156 million). Adjusted EBITDA fell sharply to ¥3.4 billion ($22.2 million), down from ¥54.5 billion in the prior period, as extraordinary losses and weaker one-off income eroded profitability.
The company said a major factor in the results was an impairment loss connected to Rovio Entertainment, the mobile game developer acquired in 2023. While segment sales in entertainment and gaming showed mixed results, the heavy write-downs tied to Rovio and losses from recent acquisitions in Sega Sammy’s gaming segment weighed heavily on overall earnings.
Despite these challenges, Sega Sammy noted bright spots, including strong slot machine sales in North America and contributions from its stake in the Paradise City resort in Korea. The decision to halt big M&A activity reflects a strategic focus on organic growth and operational recalibration as the company works to strengthen its core businesses for the remainder of FY2026.
