Dynam Japan Holdings said it didn’t expect to make a profit in the current quarter after the government ordered the closure of its pachinko parlours in Japan, but does expect to be back in the black for the full financial year, ending March 2021.
In a business update, the company said it will make a profit for the quarter ending September 2020 and sees business returning to normal from October. It said that given the current unpredictability of the situation it was unable to provide more exact figures.
The Japanese government asked pachinko halls in Japan to close operations in April. Dynam said it closed 428 pachinko halls, or 96 percent of the total at the end of April. In May, it was able to operate halls at about 53 percent of the normal level.
As a result, machine rate utilization dropped 53 percent in April and operating revenue was down 65 percent. In May, the utilization rate was down by half and revenue slumped 70 percent.
The group expects to resume operation of its halls from June.
To offset the drop in revenue, Dynam plans to cut personnel costs by 10 percent and variable costs by 15 percent, as well as adopting other cost cutting measures.