Japanese pachinko hall operator Dynam Japan Holdings Co. Ltd. (Dynam) continued to bear the brunt of severe business environment in the country, with revenues dropping 4.4 percent in the first quarter of fiscal year 2019.

Dynam announced before the Hong Kong Stock Exchange that its total revenue for Q1FY19 stands at ¥35.87 billion ($322.92million), down from ¥37.51 billion ($337.73 million) in the same period last year. Its total gross pay-ins for the first quarter ended June 30, 2018, also slipped 4.1 percent to ¥189.04 billion ($1.70 billion) from ¥197.11 billion ($1.77 billion) in Q1FY19.

On the flip side, Dynam’s hall operating expenses also declined 16.1 percent to ¥29.52 billion ($265.8 million) from ¥35.19 billion ($316.84 million).

The company attributed the decrease of its operating expenses to the reduction of pachinko and pachislot machine expenses. Data showed that pachinko and pachislot machine expenses for Q1 FY2019 stands at ¥5.18 billion ($46.64 million), a 46.9 percent plunge from ¥9.75 billion ($87.79 million) in the same period last fiscal year.