Operator News
Japan – Dynam Holdings says pachinko has recovered to 80 per cent of pre-pandemic revenue
By Phil - 27 May 2021
Japanese pachinko operator Dynam Holdings saw its revenues hit by 31 per cent falling to JPY98.6bn (US$904m) with profits down 81 per cent year-on-year to JPY2.4bn.
The company, which operates 442 pachinko halls, said: “In the face of the expansion of COVID-19, the central government of Japan has issued the third state of emergency declaration in April 2021. Thereafter, the governors of 10 prefectures requested various business sectors to suspend business operations or shorten the operating hours. Also, people are requested to refrain from certain activities. In addition, with Japan lagging behind other nations in its COVID-19 vaccine rollout, the recovery of our operating revenue has stayed at the range from 70 per cent to 80 per cent of the operating revenue of the preceding financial year.
“As for the prospect of the Company’s financial results for the current financial year, it is expected that we will make more profit than in the previous financial year. However, as the prospect of the Company’s financial results for the current financial year is still unpredictable, the Company is not able to report any specific financial figures,” it added. “We have taken measures to reduce various costs and we will continue to do so going forward. Through our efforts to lower the break-even point such as productivity reform and restructuring, we have changed our business model. Therefore, even if the economic environment does not improve and the situation continues where it is unlikely to increase the operating revenue, we are able to secure stable earnings.”
“The pachinko business is expected to recover moderately after June 2021, but it will be difficult to recover to the level of the year before the outbreak of novel coronavirus during this term, and the consolidated operating revenue will be higher than the previous year (before the outbreak of novel coronavirus). It is assumed that the level will remain at 80 per cent. The Group will continue to review the cost structure of the Group and promote reforms to a management system that can generate profits even if the consolidated operating revenue is at the level of 80 per cent compared to the previous fiscal year.
