Dynam’s profitability soars due to cost-cutting strategies

Dynam, the largest pachinko company in terms of its number of parlors, has reported a year-on-year 47.6 percent increase in its profits before income taxes in the April-September 2018 period as a result of its efforts to reduce costs. This enhanced profitability was achieved in spite of a 2.6 percent fall in gross pay-ins.

According to the company’s statement, gross pay-ins amounted to more than JPY386.8 billion (about $3.4 billion) in the six-month period, with a profit before income taxes at the JPY12.4 billion yen ($110 million) level.

The number of Dynam pachinko parlors has remained stable at 450 over the past year, though the company’s overall market share is gradually increasing as small pachinko companies face increasing harsh business environments.

Dynam’s clear strategy is to corner the low-cost end of the market through a greater amount of standardization, cost-cutting measures, the use of second-hand machines, and the utilization of various other economies of scale. They are also on the hunt to take over other pachinko operators when an opportunity presents itself.