Japanese pachinko hall operator Okura Holdings Ltd has announced a loss attributable to shareholders of JPY 577 million (US$5.2 million) for the 12 months to 30 June 2021, narrowed from a loss of JPY6.36 billion (US$57.3 million) a year earlier.
The improved result comes despite a decline in revenue, which fell 23.1% to JPY 5.42 billion (US$48.8 million) due to a decline in customer traffic since the outbreak of COVID-19 and the closure of two underperforming pachinko halls on 10 May. Okura said at the time that the two halls had been unable to recover satisfactory customer traffic when compared to some of Okura’s other pachinko halls, “which have gradually managed to regain customer traffic since the latter half of 2020.”
Another three halls were closed in late August, reducing the number of halls under Okura’s control from 17 at the start of 2021 to just 12.
The narrowed loss was largely attributed to a decrease in provision for impairment loss on the group’s assets and the other net gains recorded in the year compared with FY20. Okura also noted that hall operating expenses decreased by 55.9% to JPY 5.77 billion.
“As all of the group’s pachinko halls have gradually resumed operations since June 2020, the number of pachinko and pachislot players at the group’s pachinko halls have steadily improved in FY21,” Okura said in its results announcement.
“During FY21, the group observed a partial recovery of customer traffic at some of its pachinko halls, particularly those located in the Kyushu region.”
On the closure of halls, it added, “Management considered that the closure of the aforementioned five pachinko halls will be more beneficial for the group as the group would be able to focus its resources on its other more promising pachinko halls by enhancing customer experience there and minimise further losses from business operations by closing down those with weaker performance.”
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