Dynam net profit soars, focus on low cost halls

Dynam Japan Holdings reported an increase in net profit of 40.7 percent to JPY5.4 billion (US$48.1 million) for the six months ended September 30, 2017.

The company operated 450 pachinko halls as at the end of the six month period. It recorded revenue of JPY77.2 million, a decrease of 3.3 percent. EBITDA was JPY14.7 billion.

“During this interim period, as reflected in a decrease in the utilization of pachinko machines, the business environment for the pachinko hall operators has continued to be severe in the entire industry,” said the company in a filing.

Moving forward, the group said it is looking to expand its market share by focusing on low playing cost halls.

“One of the Group’s management policies is implementing chain store management,” said Dynam.

“Chain store theory is to maximize profit with low cost operation, which means that the greater the expansion in the number of halls, the more the profit and the greater the ratio of return to customers. Dynam, our wholly-owned subsidiary, was the pioneer which introduced the chain store management theory to the industry.”

During the interim period, the group opened 5 new low playing cost halls, closed 1 hall as a result of reviewing commercial areas and converted 1 high playing cost hall to low playing cost hall.

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