Japanese pachinko hall operator Dynam sees profits rise in FY17

The year has been kind—so far—to Japanese pachinko hall operator Dynam. In an environment that has seen pachinko slide in recent years, Dynam reported revenue gains before taxes of 13.3% in the fiscal year ending March 31, 2018, when compared to the prior year period. Dynam controls about 5% of all the pachinko parlors in the country.

, JapajnDynam operated around 450 pachinko halls through the end of March. In a filing with the Hong Kong Stock Exchange, the company reported that overall revenue in fiscal year 2017 reached $1.37 billion and profits before taxes topped $152.7 million.

Despite a steady decline of pachinko in Japan, Dynam maintains profitability by running its halls at a lower cost than other competitors. In its filing, it said, “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.”

Part of the strategy includes the standardization of the types of halls and a focus on additional halls only in regional areas with smaller populations. Dynam didn’t detail how it would overcome the rapidly shrinking interest in the once-ruling game in the country.