Hong Kong-listed Okura Holdings has announced that its Pachinko Hall, K’s Plaza Ohato Hall, located in Nagasaki City, will cease operations with effect from January 14, 2024.
The firm informed the closure of the Pachinko Hall via a Tuesday filing, noting that the decision to close down K’s Plaza Ohato has ‘duly considered’ its deteriorating operating and financial performance since the outbreak of Coronavirus Disease 2019 in Japan in January 2020 and the resulting low overall customer traffic since early 2020.
Okura considered that although K’s Plaza Ohato gradually managed to regain customer traffic in the year ended June 30, 2023, compared with some of the Group’s other pachinko halls, the recovery of customer traffic at K’s Plaza Ohato is still at a ‘slow pace’ despite the Group’s continuous effort in promoting its pachinko and pachislot games in K’s Plaza Ohato. Accordingly, this pachinko hall continues to record losses from its business operations.
The property where the Pachinko Hall is owned by the company; the management revealed that it is considering leasing out the building to generate rental income, which is expected to be a stable source of cash flow and revenue.
Okura Holdings reported a 13 percent year-on-year revenue jump in the first half of 2023, reporting that revenue increased by approximately JPY 6,284 million ($42 million) for the period.
