Japan’s second largest pachinko hall operator, Dynam Japan Holdings, has published its interim report for the six months to 30 September 2022, revealing increased income but significantly reduced profit for the period.
According to the report, Dynam – which operates 433 pachinko halls in 46 prefectures and owns three aircraft that it leases to local airlines – saw operating income increase by 10.4% year-on-year to JPY56.2 billion (US$411 million), however operating profit of JPY3.88 billion (US$28.4 million) was down 42.2% and net profit down 65.0% to JPY1.18 billion (US$8.6 million).
Although the COVID-19 pandemic has eased with the systematic relaxing of restrictions and socio-economic activities returning to normal across Japan, Dynam outlined ongoing concerns of recurrence due to new strains, an increase in the cost of raw materials and rapid yen depreciation causing inflation.
In the pachinko industry, an increase in the depreciation burden of gaming machines and increase in electricity costs saw operating expenses grow.
Conversely, the progressive introduction of new machines to meet regulations of multiple popular pachinko and slot machines has led to an increase in operating income compared to the previous year.
Dynam said it has continuing its efforts to prevent COVID infections while proactively investing in new equipment such as smart game machines in order to recover profitability.
The company has announced an interim dividend of JPY2.50 per share.