Dynam withdraws profit forecast for pachinko acquisition

Dynam has retracted its profit forecast following an “inadvertent mistake” in the acquisition announcement.

Japan.- Dynam has retracted its profit forecast regarding its recent acquisition of a pachinko business from Keiai for JPY3.8bn (US$27.2m). The company acknowledged an “inadvertent mistake” in the initial announcement.

Dynam had said the acquisition of five pachinko hall operations in the Gifu Prefecture of Japan was “expected to result in an annual increase of net profit of more than JPY300 million ($2.14 million)”. Following a review, it says it does not expected a profit resulting from the transaction. The company attributes the mistake to an oversight.

Despite this revision, Dynam asserts that the terms of the agreement remain fair and reasonable, serving the best interests of the company and its shareholders.

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.

It aimed to counteract the decline witnessed in its consolidated net profit, which fell 63.9 per cent primarily attributed to increased depreciation expenses of pachinko and pachislot machines and rising utility costs.