Sega reports 22% growth in H1 video game revenue, driven by DLC sales, back catalog, and Rovio
Sega has released its financial report for the six-month period ended September 30, 2024. Despite a lack of new hits, the Japanese publisher saw strong growth in its video game business.
Shin Megami Tensei V: Vengeance
- According to its earnings presentation, Sega generated ¥211.6 billion ($1,38 billion) in revenue in H1 FY25, down 4,5% compared to the same period last year.
- Operating profit fell 18% year-over-year to ¥32.8 billion ($215 million).
- The Entertainment Contents, which includes video games, animation, and toys, reached ¥141.7 billion ($928.8 million) in revenue, up 16.5%. Its operating profit grew 136% to ¥18.7 billion ($122.5 million).
- Revenue exceeded expectations due to strong DLC sales, positive impact from foreign exchanges, and recording Rovio’s revenue. Sales of games released in the first quarter “went sluggish” in Q2.
- For video games specifically, which Sega classifies as the Consumer subsegment, revenue reached ¥95.6 billion ($626 million) — up 22% year-over-year.
- 61,5% of all video game sales in the first half of FY25 came from countries outside Japan.
- Full-game sales grew 18% to ¥27.7 billion ($181.4 million), but were below expectations. Back catalog titles accounted for almost 80% of the total.
Sega's best-selling franchises in H1 FY25
- Persona — 1.81 million copies.
- Sonic — 1.53 million copies.
- Like a Dragon — 1.41 million copies.
- Total War — 1.24 million copies.
- Free-to-play games generated ¥23,1 billion ($151.3 million), while revenue from the Other category, which includes DLC and Rovio, among other things, increased 120% to ¥448 billion ($293 million).
- Rovio, which Sega acquired for over $700 million last year, reached ¥17 billion ($111 million) in revenue in H1 FY25.
- The company is now gearing up for the launch of Sonic Rumble scheduled for this winter. Sega is developing the game, while Rovio is responsible for its global marketing.
- During the first six months of FY25, Sega sold 12.39 million copies of games, up 17% year-over-year. Sales of new releases, however, amounted to just over 1 million units.
- As part of the restructuring of its European business, Sega divested Amplitude Studios through MBO (management buyout). The Endless Space developer will now become independent again. This deal also resulted in a loss of ¥5.9 billion ($38.6 million) for the Japanese company.
