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Dynam Japan reports 92% decline in profit through September on pachinko hall closures

Newsdesk by Newsdesk
Thu 26 Nov 2020 at 06:08
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Dynam Co, Ltd, Japan’s second largest pachinko hall operator with halls in 46 prefectures, has reported a 92.0% fall in net profit attributable to owners of the company to JPY698 million (US$6.7 million) for the six months to 30 September 2020.

The results were heavily impacted by the temporary closure of pachinko halls at the height of the COVID-19 pandemic, which saw Dynam suspend operations at 436 or 97% of its halls nationwide.

As a result, gross pay-ins fell 42.1% year-on-year to JPY219.66 billion (US$2.10 billion) with revenue down 37.9% to JPY45.99 billion (US$440.2 million). The company said it operated 445 halls as of 30 September, down from 449 a year earlier.

In its six-month results announcement published Wednesday, Dynam said all of its halls are now back in operation but noted that operating revenues were still only back to between 70% and 80% of the same period in 2019.

“As for the prospect of the company’s financial results for the second half of the current financial year, it is expected that we will make a profit for the three-month period ending 31 December 2020 and for the three-month period ending 31 March 2021 and that we will make a profit for the financial year ending 31 March 2021,” it said.

“However, as the prospect of the Company’s financial results for the current financial year is still unpredictable, the Company is not able to report any specific financial figures for the financial year ending 31 March 2021.

“As countermeasures against the decline of operating revenue, during the first half of the current financial year, we have reduced the costs of machine, personnel costs, variable costs and fixed costs and we will continue to reduce such costs.

“We intend to change our character by lowering the break-even point through productivity reform and restructuring so that we can continuously secure stable earnings.”

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The IAG Newsdesk team comprises some of the most experienced journalists in the Asian gaming industry. Offering a broad range of expertise, their decades of combined know-how spans multiple countries across a variety of topics.

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