Japan’s second largest pachinko operator, Dynam Holdings Ltd, saw its revenue decline 3.0% to ¥152.1 billion in the 12 months to 31 March 2018. But the company’s move away from high playing cost halls to low playing cost halls appears to be paying dividends with gross pay-ins at its low cost pachinko halls enjoying a slight increase.
Dynam’s total gross pay-ins decreased by 5.2% to ¥775.1 billion, due primarily to an 8.6% decrease at high playing cost halls to ¥456.0 billion. Gross pay-ins at low playing cost halls increased by 0.1% to ¥319.0 billion, with the company stating that, “The increase was due primarily to the positive effect of operational measures for improvement of machine utilization and increased number of halls.”
Revenue from high playing cost halls decreased by 4.5% to ¥77.7 billion while revenue from low playing cost halls declined 1.5% to ¥74.4 billion.
Profit attributable to owners of the company increased 16.1% to ¥10.9 billion, with the number of halls under Dynam’s control rising by four in the financial year from 446 to 450.
Discussing the results, which come amid tightening regulations limiting the payouts machines are able to offer, Dynam said the group has “adopted a key policy of prioritizing hall creation from the customers’ viewpoint and promoting sales focused on customers at each hall, and so refurbished halls and implemented various experimental sales policies, all as an initiative for growing and developing together with the local community.
“The group aims to establish pachinko halls as a part of the community infrastructure to provide daily entertainment that everyone can easily enjoy, and is engaged in expanding its industry share of low playing cost halls to realize this objective.”
Dynam said that it has opened six new low playing cost halls and closed two high playing cost halls in the 12 months to 31 March. It now operates 180 high cost halls and 270 low cost halls.
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