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Japan – Konami loses half its gaming revenue due to global pandemic

By - 9 November 2020

Konami Gaming saw its total revenue for the six months ended September 30, fall by 51.9 per cent to ¥7,150m, (US$66.6m) resulting in a loss of ¥1,236m (US$11.8m).

The company stated: “In the gaming market, various measures were taken by governments of each nation to mitigate the coronavirus outbreak from the beginning of this year. As a result, casino facilities were closed temporarily from the middle of March, except in some areas, and the gaming business was forced to suspend virtually all its operations. Although business gradually resumed from the end of May, it will take time for the market to fully recover under this severe business environment due to certain business restrictions and continued travel restrictions.”

Konami still managed to launch two new slot machines, the Dimension 27 and the Dimension 49JTM featuring a “J” curve display.

The company stated: “We recognised revenue for the sale of slot machines, including our core KX 43TM upright cabinet and Concerto series, as well as revenue from participation agreements (in which profits are shared with casino operators). We will also expand our video slot game All Aboard, which had been well received in the Australian market, to the North American market, and promote the expansion of game content against the backdrop of its high performance and enhance Konami’s presence in the market.

“In our casino management system segment, in addition to new installations of Synkros to large casino facilities in North America and Australia, we introduced new functionality which will endeavor to enhance and strengthen our product appeal including SynkConnect, which allows the user to display and manage their own account on their mobile device, SynkVision, which provides optimal information to players using the latest biometric authentication technology, and a money laundering prevention system, SYNK31TM. 11.”

“The coronavirus outbreak is expected to continue to impact on our future business activities and the financial performance of the fiscal year ending March 31, 2021 onwards, depending on when the outbreak settles down, when the restrictions on overseas travel and operation of casino facilities are lifted, and when business conditions of companies and the number of visitors recover. Meanwhile, we are working hard to improve the earnings through various measures including cost reductions.”

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