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Pachinko hall streamlining efforts help Dynam Japan to 53.6% profit surge

Ben Blaschke by Ben Blaschke
Wed 21 Nov 2018 at 18:09
Sega Sammy confident in future despite latest pachinko and pachislot slide
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Dynam Japan Holdings, Japan’s second largest pachinko operator, saw its net profit increase by 53.6% to ¥8.34 billion (HK$574 million) in the six months to 30 September 2018 as the company continues to cut costs due to growing pressures on the local pachinko industry.

The profit growth comes despite a 2.6% year-on-year fall in gross pay-ins to ¥386.84 trillion (HK$26.62 billion) and a 4.7% decline in revenue to ¥73.58 billion (HK$5.06 billion).

Dynam has been adjusting its business operations in recent years by gradually converting its high playing cost halls to low playing cost halls and standardizing their design to save on set-up costs. It is also targeting smaller populated regional areas, “opening new halls in small regional business areas with 30,000 to 50,000 residents” while “reaping the benefits of the economies of scale of multiple-hall development to limit purchasing cost of gaming machines and general prizes.”

The company has increased the number of halls under its watch from 362 in 2013 to 450 at present, with 83 of its 88 new halls in that time being low playing cost halls.

Revenue from Dynam’s high playing cost halls fell 6.8% for the half to ¥36.80 billion (HK$2.53 billion) with revenue from low playing cost halls experiencing a more modest 2.5% decline to ¥36.78 billion (HK$2.53 billion). Gross pay-ins at low cost playing halls actually increased by 0.6% for the period.

Dynam said that its hall operating expenses fell from ¥69.70 billion to ¥62.45 billion year-on-year for the half.

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Ben Blaschke

Ben Blaschke

A former sports journalist in Sydney, Australia, Ben has been Managing Editor of Inside Asian Gaming since early 2016. He played a leading role in developing and launching IAG Breakfast Briefing in April 2017 and oversees as well as being a key contributor to all of IAG’s editorial pursuits.

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