Okura Holdings sees 2020-21 revenue decrease after Covid impact

JPY4.91bn of the revenue total was derived from pachinko and pachislot halls. JPY351.0m was generated from property rental, vending machine revenue was JPY93.0m, and revenue from other income amounted to JPY74.0m.

Operating expenses also decreased for the company, dropping 52.6% to JPY6.60bn. Pachinko and pachislot machines expenses were JPY1.65bn, hall operating expenses were JPY1.02bn, and depreciation and amortisation costs came to JPY1.02bn.

Utilities expenses came to JPY294.0m, administrative costs were JPY291m, while advertising and promotion expenses totaled JPY171.0m.

As a result of these costs, operating losses for the year were JPY81.0m, compared to JPY6.59bn in 2020. Finance costs also increased to JPY192.0m.

After accounting for JPY304.0m worth of income tax, overall losses for the company came to JPY577.0m – an improvement on the JPY6.36bn figure recorded in 2020.

A statement from Okura Holsings said: “The pachinko industry in Japan has been suffering a continuing contraction in recent years due to increasing competition from other forms of entertainment in Japan and the introduction of measures to curb the gaming element in pachinko and pachislot games.

“In particular, since the outbreak of the Coronavirus Disease 2019 (“COVID-19”) in Japan in January 2020, the pachinko industry has been struggling to cope with further worsened business conditions which may accelerate the industry’s decline.

“The Group’s pachinko halls recorded a significant decline in pachinko and pachislot players due to the temporary closure of all entertainment facilities (including pachinko halls) in mid-April 2020 and May 2020, following the Japanese prefectural governments’ attempts to contain the local spread of COVID-19 in Japan.”