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.