Pachinko giant Dynam Japan says it is looking at ways to reduce costs in the coming months following a decline in revenue of up to 35% for April and May due to pachinko hall closures during COVID-19.
In a voluntary announcement outlining the impact of COVID-19 on its business, Dynam said it had closed 428 or 96% of its pachinko halls in late April in response to Prime Minister Shinzo Abe’s state of emergency, resulting in machine utilization of just 53% and a 65% fall in revenue for the month. May has seen machine utilization of 53% and a revenue decline of 70%.
With the state of emergency now lifted, Dynam said its halls will all be reopened by June with recovery from July and normal business operations returning from October. However, Dynam said, “it is expected that our profit will decline sharply and we will not make a profit for the three month period ending 30 June 2020, but will make a profit for the three month period ending 30 September 2020. It is also expected that we will return to normal from October 2020, and will make a profit for the financial year ending 31 March 2021.”
In order to expedite the recovery, Dynam said it will reduce the cost of machines by 20%, personnel costs by 10%, variable costs by 15% and fixed costs by 5%.
“We will control decrease of revenue due to the influence from coronavirus infection and secure the stable earnings continuously by lowering the break-even point through productivity reform and restructuring,” it said.
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