Pachinko operator Okura Holdings reported a significant increase in profit before income tax, rising approximately JPY929 million ($6.1 million) in the second half of 2023, a 569.9 percent bump from the same period in the previous year.
The group attributed the boost to gains on lease modification, reflecting the group’s strategic adjustments in response to market dynamics.
Operating under the trade names “Big Apple,” “K’s Plaza,” and “SENKURA,” Okura Holdings manages 10 pachinko and pachislot halls across various regions in Japan, including Kyushu, Kanto, Kansai, and Chugoku.
In its annual report for the fiscal year ending on December 31st, 2023, the company noted the Japanese government’s gradual relaxation of certain COVID-19 restrictions as part of efforts to revitalize social and economic activities.
Despite global economic uncertainties affecting consumer spending on entertainment, Okura observed a rebound in customer traffic at most of its pachinko and pachislot halls in the second half of 2023.
This resurgence was attributed to the introduction of new gambling machine models, including the 6.5 Model Pachislot Machines, Smart Slot Machines, and Smart Pachinko Machines, which proved popular among patrons.
A growing year
Overall, according to its latest financial report, Okura’s gross pay-ins surged by a noteworthy 12.5 percent, reaching an approximate value of JPY16.37 billion ($108.6 million) compared to approximately JPY14.54 billion ($96.5 million) recorded during the same period in the previous fiscal year.
Furthermore, the company’s revenue experienced a commendable uptick of approximately 2.7 percent, totaling approximately JPY3.19 billion ($21.1 million) for the period, compared to approximately JPY3.1 billion ($20.6 million) reported in the corresponding period of 2022.
There was also a surge in operating profit, which soared by 348.4 percent to approximately JPY1.14 billion ($7.5 million) for the second half of 2023, in sharp contrast to the approximately JPY254 million ($1.6 million) reported in the same period in the previous year.
Moreover, the profit before income tax witnessed an escalation of approximately 569.9 percent, reaching approximately JPY1.09 billion ($7.2 million) during the last six months of 2023.
The profit attributable to shareholders of the Company also witnessed an increase, rising by approximately 1,140 percent to approximately JPY1.11 billion ($7.4 million).
Moreover, Okura management announced the closure of one of its pachinko and pachislot halls, K’s Plaza Ohato, located in Nagasaki City, Nagasaki Prefecture, Japan, effective from January 14th, 2024.
The decision aims to consolidate resources and focus on enhancing customer experience at other high-performing locations while minimizing losses from under-performing operations.
