Japanese pachinko hall operator Okura Holdings Limited has issued a profit alert ahead of its FY23 results announcement, with the company expecting to report a profit of at least JPY2.90 billion (US$19.9 million).
The improved result compares to a loss of JPY1.21 billion (US$8.3 million) during the 12 months to 30 June 2022, based on a preliminary review of the unaudited management accounts of the group.
The FY23 result is, Okura said, attributable to a decrease in provision for impairment losses on the Group’s property, plant and equipment, intangible assets and right-of-use assets of not less than JPY1.10 billion (US$7.5 million) as a result of the stabilization in business performance at its pachinko halls in FY2023.
It also reflects an increase in gain on release of lease liabilities of at least JPY2.20 billion (US$15.1 million), which mainly arose from the termination of a lease due to the closure of the group’s pachinko hall ‘‘Big Apple. Ofuna hall’’ with effect from 7 May 2023.
Okura, which operates 11 pachinko halls in the Kyushu, Kanto, Kansai and Chugoku regions of Japan, said it expects to publish it audited results by the end of September.