Japan’s pachinko market leader, Dynam Japan Holdings, saw its revenues decline in the three months to 30 June 2017 due to “a harsh environment” that has seen a fall in the number of customers playing in its high playing cost halls.
In its 2Q earnings release, filed with the Hong Kong Stock Exchange on Thursday, Dynam recorded total gross pay-ins of ¥197 billion, a 4.7% decrease compared with the ¥206 billion in total gross pay-ins in the respective period 12 months earlier. It includes a 7.9% fall in pay-ins from high cost playing halls to ¥117 billion, while low cost playing halls notched a slight 0.6% increase to ¥80 billion.
Total revenue decreased by 0.9% to ¥37.5 billion compared with the same period last year.
“During this first quarter, the pachinko hall industry has continued to operate under a harsh environment as the number of customers, especially in high playing cost halls, declines and the playing revenues continue to decrease,” the company said.
“On the other hand, we attract customers by creating easily accessible and secured environments through an increase in low playing cost halls and a staged reduction of the percentage of gambling game machines being installed.
“Under such an environment, the group adopted a key policy of prioritizing hall creation from the customers’ viewpoint and promoting sales focused on customers at each hall, refurbished halls and implemented various experimental sales policies, all as an initiative for growing and developing together with the local community.
“Furthermore, as an effort to improve operations, the group incorporated company-wide sharing of successful examples of gaming environment improvements and sales measures that each hall is engaged in.
“Through such countermeasures, the number of halls as at the end of June 2017 became 450. By hall type, we operate 181 high playing cost halls and 269 low playing cost halls.
“As a result of our efforts mentioned above, while total gross pay-ins and revenue decreased, gross pay-ins and revenue in low playing cost halls showed positive performance which are higher than the previous first quarter.”
Dynam’s total hall count increased from 444 halls 12 months ago, with the number of low cost playing halls growing from 261 to 269 while the number of high cost playing halls fell by two to 181.
