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Dynam Japan sees profits rise 22.3% as Japan’s economy improves

Pachinko hall operator Dynam Japan has announced its interim results for the six months ended September 30th, 2024, revealing a mixed performance as Japan’s economy shows signs of recovery.

The company reported total revenue of JPY63.7 billion ($412.35 million), reflecting a slight decrease of 1 percent compared to the same period last year. However, profit before income taxes rose significantly to JPY3.5 billion ($22.65 million), marking a robust increase of 22.3 percent year-on-year.

The net profit attributable to the owners of the company reached JPY2.1 billion ($13.59 million), reflecting a 16.9 percent increase from the previous year. As of September 30th, Dynam Japan operated 429 pachinko halls, slightly down from 434 halls a year earlier.

Revenue from the pachinko business specifically decreased by JPY2.01 billion ($13 million), or 3.2 percent – from JPY62.19 billion ($402.67 million) for the six months ended September 30th, 2023, to JPY60.18 billion ($389.67 million) for the same period in 2024.

Revenue from high playing cost halls fell by JPY1.43 billion ($9.26 million), or 4.9 percent, while revenue from low playing cost halls decreased by JPY581 million ($3.75 million), or 1.8 percent. The revenue margin for high playing cost halls dropped to 19 percent, while the margin for low playing cost halls increased slightly to 24.8 percent.

The company noted that the Japanese economy has been bolstered by increased inbound demand and improvements in employment and household income. However, uncertainties remain due to potential downturns in overseas markets and fluctuations in currency exchange rates, the company reported.

‘The pachinko industry is undergoing significant restructuring, driven by mergers and acquisitions, while also facing challenges such as declining customer numbers and ongoing closures of pachinko halls’, the company added.

Despite these difficulties, Dynam stated that the pachislot market has shown resilience, particularly among younger players, thanks to the introduction of smart pachislot machines. The company is optimistic about the recovery of the pachinko market, especially with the rollout of new machines featuring innovative gaming functionalities.

Dynam Japan is focusing on enhancing profitability through operational efficiencies. The company has made progress in reducing operating expenses, which decreased by JPY1.51 billion ($9.76 million), or 2.6 percent, to JPY57.70 billion ($372.24 million) for the six months ended September 30th, 2024.

This reduction includes a decrease in expenses for both high and low playing cost halls, with Dynam Japan saying it is actively working to increase the installation of smart pachinko and pachislot machines to attract more customers.

Nelson Moura
Nelson Mourahttp://agbrief.com
Editor and reporter with 10 years of experience in Greater China, namely Taiwan and Macau, in printed and online media, with a focus on finance, gaming, politics, crime, business and social issues.

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