Dynam paid JPY3.8bn (US$27.2m) for the pachinko business.
Japan.- Dynam Japan Holdings, one of Japan’s largest pachinko hall operators, has acquired a pachinko business from Keiai for JPY3.8bn (US$27.2m). It says the strategic acquisition will bolster its position in an industry facing notable challenges.
The acquired business encompasses five pachinko hall operations in the Gifu Prefecture of Japan. According to a report dating back to October 31, 2022, the net asset value of these operations stood at approximately JPY1.292bn (US$9.28m).
The decision to pursue this acquisition stems from the current downturn witnessed in the pachinko hall industry. The market size and the number of machines installed have experienced a decline, resulting in increased suspensions and closures among industry competitors.
Interest in pachinko games has also been falling due to the development of online games. The trend for young people to play mobile games instead of going to a pachinko parlour has been accentuated during increased confinement due to the Covid-19 pandemic.
To fortify the group’s future corporate performance, Dynam has been focusing on opening halls in areas with market potential. However, the uncertainty of securing customers through new hall openings has led the company to adopt an alternative approach, acquiring established businesses with existing customer bases.
Dynam aims to leverage this strategic move to counteract the decline witnessed in its consolidated net profit for the fiscal year 2023. Despite an 11.5 per cent rise in revenues to JPY117.2bn (US$841m), the firm’s consolidated net profit attributable to owners fell 63.9 per cent, primarily attributed to increased depreciation expenses of pachinko and pachislot machines and rising utility costs.