Okura Holdings issues profit warning

The company has presented a pessimistic outlook on finances for May 2020 and June.

Japan.- Okura Holdings Limited has issued a profit warning to shareholders, in view of the financial results for the 11 months ending in May 2020.

In the warning, the company’s directors said that, based on a preliminary review of accounts, the firm expects a record decrese in profits compared with the same period in 2019.

Profit before income tax would be, if the previsions are correct, 83% lower than last year.

The warning said: “Such expected decrease in the profit before income tax was mainly attributable to the drop in revenue as a result of the temporary closure of all 17 pachinko halls of the Group during various periods between April and May 2020 due to the outbreak of COVID-19 in Japan.

Due to the uncertain outlook of the group’s pachinko halls in light of the adverse market conditions following the outbreak of the new coronavirus, the company expects to record impairment losses on its property, plant and equipment and right-of-use assets as at June 30.

The directors warned shareholders that the situation was likely to impact results for June,

The company is said to still be assessing the amount of impairment losses and could make further announcements.