Japanese conglomerate Dynam Japan Holdings Co. Ltd. has released its financials for the second half of the 2019 fiscal year and the results are not what the company had anticipated, but they’re still not too bad. The company earned revenue of $664.66 million, a dip of 2.8% year-on year, but this was still a little better than the $657.36 million some analysts had forecast. EBITDA (earnings before interest, taxes, depreciation and amortization), however, was down more and was even lower than what analysts had expected.

EBITDA came in at $119.6 million, a year-on-year decrease of 11.2%. Union Gaming analysts had previously announced that they predicted an EBITDA of $158.8 million, which had been based on expectations of gaming machine sales. Those expectations came from what has been a continued climb over the past few years in Dynam’s gaming activity.

Dynam has its hands in a number of activities, including pachinko halls, and several changes are coming that are going to have a negative impact on that segment. An impending consumption tax increase in Japan, which is going to 10%, is going to hurt the industry and Dynam’s volumes. In addition, all pachinko halls are going to have to be updated to include separate smoking and non-smoking sections by April of next year, which could temporarily affect the numbers.

Dynam has done better than most due to its business model. It reported a 53.6% year-on-year net profit increase for the second and third quarters of last year, and this is partly due to the inclusion of lower volatility machines in its venues. These machines account for around 40% of the company’s operations and are performing better than what had been expected.