Okura Holdings swings to interim reduction on impairments, but income secure

Okura Holdings, an operator of pachinko and pachislot halls in Japan, swung to a reduction in the 6 months to conclude-December, mostly owing to impairment losses.

The Hong Kong-mentioned business posted a decline attributable to shareholders of Y333 million ($2.8 million), when compared with a income in the prior yr of Y23 million. Income was reasonably secure, dipping to Y2.73 billion from Y2.744 billion.

The company, which gets 90.5 % of its earnings from pachinko and pachislot, reported the decrease was owing to the closure of a few pachinko parlors final year. 

Okura operates 12 pachinko halls in the Kyushu, Kanto, Kansai and Chugoku areas of Japan beneath the Massive Apple and K’s Plaza brands.

The enterprise warned that the multi-billion dollar market in Japan is continuing to drop and actions to restrict the spread of Covid may speed up the pattern.

The halls are struggling with rising competitiveness from other types of enjoyment in Japan. They have also grow to be a lot less attractive to players considering the fact that new regulations were being introduced in 2018, which will require pachinko operators to change their machines with newer versions that have significantly less of a gaming factor.