The Japanese pachinko hall operator’s net profits dropped 82 per cent year-on-year for the year ending March 31.
Japan.- Dynam Japan Holdings, one of Japan’s largest pachinko hall operators has reported an 82 per cent drop in net profits year-on-year to JPY2.36bn (US$21.6m).
Total revenue for the year ending March 31 amounted to JPY98.60bn (US$904.2m), down 31 per cent when compared to the previous year.
Dynam currently operates 442 pachinko halls, only six fewer than the number reported on March 31 2020 despite pressure on the sector from the Covid-19 pandemic.
In March, the regular monthly survey of All Japan Amusement Business Cooperative Association reported that the number of pachinko parlours had fallen by 111 compared to the previous month.
In 2020, the number of active pachinko halls fell by 584 to 8,302, a 7 per cent decrease year-on-year.
Dynam reported profit before income tax at JPY4.34bn, down 78 per cent year-on-year, while gross pay-ins dropped 35 per cent to JPY475.16bn.
Last year, pachinko halls were forced to temporarily suspend operations from April 2020 until June 2020 due to the impact of the Covid-19 pandemic. Since July 2020 Dynam has returned to nearly 80 per cent of pre-pandemic levels.
Under these circumstances, the company expects to reach fully recovery from June, although it said: “It will be difficult to recover to the level of the year before the outbreak of novel coronavirus during this term.
“The consolidated operating revenue will be higher than the previous year (before the outbreak of novel coronavirus). It is assumed that the level will remain at 80 per cent.”
In April pachinko parlours were ordered to close again due to a fourth wave of Covid-19 cases in Japan, but pachinko business appeared to have decided not to accept the request and to continue operating.
In Tokyo, authorities asked smaller businesses, including pachinko parlours to close and turn off neon signs after 8pm to discourage people from going out at night.