Okura Holdings swings to interim decline on impairments, but earnings steady

Okura Holdings, an operator of pachinko and pachislot halls in Japan, swung to a decline in the six months to close-December, largely due to impairment losses.

The Hong Kong-shown enterprise posted a decline attributable to shareholders of Y333 million ($2.8 million), compared with a revenue in the prior 12 months of Y23 million. Income was rather stable, dipping to Y2.73 billion from Y2.744 billion.

The corporation, which receives 90.5 percent of its income from pachinko and pachislot, explained the decline was owing to the closure of a few pachinko parlors final year. 

Okura operates 12 pachinko halls in the Kyushu, Kanto, Kansai and Chugoku locations of Japan below the Big Apple and K’s Plaza brands.

The corporation warned that the multi-billion greenback marketplace in Japan is continuing to decrease and actions to limit the spread of Covid may well speed up the trend.

The halls are struggling with expanding levels of competition from other types of entertainment in Japan. They have also turn into less captivating to players since new guidelines have been launched in 2018, which will call for pachinko operators to switch their machines with newer versions that have less of a gaming element.