Can the North America-led recovery in gaming continue through the first half?

Consolidated revenue in the first quarter of the fiscal year ending March 2027 was ¥10,280.724 million, comprising ¥7,573.966 million from Global Gaming, ¥1,688.792 million from Overseas Commercial, ¥366.439 million from Domestic Commercial and ¥651.525 million from Gaming Venue Equipment. Global Gaming accounted for approximately 73.7% of revenue, while the two overseas-related segments, including Overseas Commercial, accounted for approximately 90.1%. The 35.1% year-on-year increase in company-wide revenue was therefore substantially dependent on overseas demand, particularly the recovery in North American gaming.

Profit concentration was also high. Global Gaming segment profit rose 97.7% year on year to ¥2,097.389 million, while Overseas Commercial posted only ¥25.568 million in profit. Domestic Commercial reported a loss of ¥80.552 million and Gaming Venue Equipment a loss of ¥88.398 million, bringing the combined loss for the two domestic segments to ¥168.950 million. Accordingly, what needs to be confirmed in the first half is not only whether company-wide revenue growth continues, but also whether Global Gaming's profit growth continues, whether Overseas Commercial can establish a sustained profit, and whether losses in the two domestic segments narrow.

Cumulative historical results show substantial variation between segments. In the first half of the fiscal year ended March 2026, Global Gaming revenue was ¥9,778 million, down 8.5% year on year; Overseas Commercial revenue was ¥2,000 million, down 41.8%; Domestic Commercial revenue was ¥1,180 million, down 51.2%; and Gaming Venue Equipment revenue was ¥1,814 million, down 61.5%. Segment profit was also uneven: against Global Gaming's ¥2,214 million, Overseas Commercial reported a loss of ¥561 million and Gaming Venue Equipment a loss of ¥158 million, suggesting that the current recovery may not reflect a uniform market recovery.

The first-quarter disclosure did not provide figures for leading demand indicators such as regional revenue, orders received, order backlog or unit sales. In the first-half results, we want to confirm not only Global Gaming revenue and profit and the size of Overseas Commercial's profit, but also the value of European orders, product-level sales trends in North America and the reduction in losses at the two domestic segments. In particular, the key to assessing the sustainability of the full-year plan will be whether Global Gaming revenue in the first half rises substantially above the first-quarter standalone figure of ¥7,574 million and whether the increase is accompanied by an improved profit margin.