Dynam Co, Ltd, Japan’s second largest pachinko hall operator, has reported an 81.5% decrease in net profit attributable to owners of the company to JPY2.36 billion (US$21.6 million) for the year ended 31 March 2020, impacted by temporary pachinko hall closures and reduced patronage due to COVID-19.
Consolidated revenue from the group’s primary pachinko business and its smaller aircraft leasing business was JPY98.60 billion (US$903.6 million), down 30.8% year-on-year, with gross pay-ins – the amount of money put through its pachinko machines – falling 35.2% to JPY452.16 billion (US$4.1 billion). Gross pay-outs were down by 36.0% to JPY378.02 billion (US$3.5 billion).
Dynam operates 442 pachinko halls in 46 prefectures in Japan via a mix of what it calls high playing cost halls and low playing cost halls. The group has been developing a new strategy in recent times to counter changes to Japan’s pachinko payout rules, implementing standardized hall types and opening or acquiring halls in smaller populated regional areas.
“The Group standardizes the interior layout and installation number of gaming machines of the halls,” Dynam said. “This has enabled the Group to cut down initial investment costs and period of construction.”
Despite nine areas in Japan – Tokyo, Osaka, Hyogo, Kyoto, Aichi, Fukuoka, Hokkaido, Okayama and Hiroshima – currently under a state of emergency, Dynam’s pachinko halls remain mostly open with the company stating it expects to record stable results over the next year.
“The pachinko business is expected to recover moderately after June 2021, but it will be difficult to recover to the level of the year before the outbreak of novel coronavirus during this term,” it said.
“It is assumed that the level will remain at 80%. The Group will continue to review the cost structure of the Group and promote reforms to a management system that can generate profits even if the consolidated operating revenue is at the level of 80% compared to the previous fiscal year.”
Dynam declared a dividend of JPY2 per share, payable on 25 June 2021.
