Pachinko hall operator Dynam reported a 13.3 percent increase in its profits before tax as compared to the previous year.
Dynam, which operated 450 pachinko halls in Japan by the end of March, is by far the largest single company in the highly decentralized pachinko market, operating almost a 5 percent of the nation’s pachinko parlors.
The company’s overall revenue in FY17 was JPY152 billion ($1.37 billion), with profits before taxes coming to JPY16.8 billion, the company said in a report to the Hong Kong Stock Exchange.
The report explained that Dynam’s basic strategy is to run pachinko parlors at a lower cost than their many smaller competitors: “By reaping the benefits of the economies of scale through multiple-hall development when purchasing game machines and general prizes, the group has positioned itself in a strong, advantageous position to develop the pachinko hall operation business.”
This strategy includes, “standardizing hall types and concentrating on opening halls in smaller populated regional areas.”
The report did not make mention of adverse changes in government regulation, though it did note that, “the pachinko hall industry continues to operate under a harsh environment as the number of customers declines, centering on high playing cost halls, and the playing revenues continue to decrease.”