Net profits for the Japanese pachinko hall operator dropped 92 per cent year-on-year in the six months ending September 30.
Japan.- Dynam Japan Holdings, one of the country’s largest pachinko hall operators, reported a 92 per cent drop in net profits year-on-year for the six months ending September 30.
In spite of the hammering, the firm managed to stay out of the red reporting profits and declaring a dividend for shareholders.
Total revenue amounted to HK$3.4bn (US$434.6m), down 37.9 per cent against H1 2019.
Profit before income tax was HK$107m and net profits reached HK$50m.
The company listed a number of countermeasures it has applied to cope with the decline of operating revenue, reducing costs of machines, personnel and other variable and fixed costs to lower the break-even point through productivity reform and restructuring.
The company says pachinko sales at its halls since July have been running at between 70 and 80 per cent of the levels seen in 2019.
It said that due to quarantine measures ordered by Japan’s central government, in April it had been forced to close 436 of its pachinko halls, about 97 per cent of its estate.
Dynam said: “Since June 2020, all of such closed halls have resumed operations. However, the recovery of our operating revenue from July 2020 has stayed at the range from 70 per cent to 80 per cent of the operating revenue of the preceding financial year.”
For the second half of the financial year, which will end on March 2021, the group expects to report profits in both quarters, as well as in full-year results, although it says the financial situation remains “unpredictable”.