Dynam Japan Holdings announced a 6.8 percent drop in revenue to ¥154.5 billion ($24.9 billion) for the year ended 31 March 2014, while profit for the period fell 46.8 percent to ¥11.3 billion.
The pachinko hall operator’s gross pay-ins were ¥826 billion, recording a decrease of 10.4 percent compared with the year ended 31 March 2014. Profit before tax was ¥19.5 billion, a YoY decrease of 43.6 percent.
The company said it operated 393 halls as of 31 March 2015, nearly 20 more than the previous year’s period of 375 halls in operation.
“In this environment, the Group holds the No.1 position in the industry in terms of hall numbers. We aim for sustainable profit growth over the long-term by taking maximum advantage of the economies of scale of multiple-hall development based on our chain-store management.”
The company said it is promoting low playing cost games through multiple halls as the pillar of its growth strategy. Low playing cost games reduce costs to users by setting ¥1-per-ball and ¥5-per-token games, as opposed to conventional ¥4-per-ball and ¥20-per-token games, “to enable customer to have enjoyment without imposing a significant cost burden on them.”
However, despite the popularity of such games there is a risk of lower profitability, the company said.
“[W]hile low playing cost games lead to increased customer numbers and visit frequency as well as development of a new customer base, there is also a risk of decreased profitability at pachinko halls.”
“We aim to rationalize the key costs related to machines and personnel, which make up approximately 60% of hall operational expenses…”