Leading Japanese pachinko hall operator Dynam Japan Holdings reported 57.8% increase in net profit attributable to the parent to HK$98 million (US$12.6 million) in the six months to 30 September 2023, aided by an increase in the number of pachislot machines in many of its halls.
The result included a 12.8% year-on-year increase in revenue from the company’s pachinko business to HK$3.26 million (US$418,300), of which HK$1.73 million (US$222,000) came from low playing cost halls and HK$1.53 million (US$196,300) from high playing cost halls. Dynam has previously outlined its desire to focus on low playing cost halls in order to reduce operating costs.
Revenue from the company’s smaller aircraft leasing business grew by 109% year-on-year to HK$2.19 million (US$281,000).
Outlining its results, Dynam said the Japanese economy has been on a path to recovery thanks to easing of domestic activity and entry restrictions.
“In the pachinko industry, although suspension and closure of halls continued, the recovery trend was becoming clearer as the utilisation of ‘smartslot’ machines remained firm from their introduction in November 2022 on,” it said.
“As for the pachinko business of the Group, the Group achieved significant revenue growth driven by an increase in the number of pachislot machines at many halls on a large scale from the beginning of this fiscal year taking into account the situation in the utilization of pachislot machines after the introduction of ‘smartslot; machines. The Group also posted profit growth since the Group absorbed a rise in cost of electricity, depreciation expenses arising from pachinko and pachislot machines and the overhead expenses associated with refurbishments at halls.
“Moreover, five halls anew joined the Group through business succession by way of absorption type company split. The Group will pursue improvements in profitability with an effort to expand the number of halls through several ways in the future.”
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