In the finance sector, Okura Holdings reported a total revenue of JPY4.91bn. The majority of this revenue, specifically JPY4.91bn, came from pachinko and pachislot halls. Other sources of revenue included JPY351.0m from property rental, JPY93.0m from vending machines, and JPY74.0m from other income.
The company also saw a decrease in operating expenses, which dropped by 52.6% to JPY6.60bn. The expenses breakdown includes JPY1.65bn for pachinko and pachislot machines, JPY1.02bn for hall operating expenses, JPY1.02bn for depreciation and amortization costs, JPY294.0m for utilities expenses, JPY291m for administrative costs, and JPY171.0m for advertising and promotion expenses.
As a result of these expenses, the company experienced operating losses of JPY81.0m, compared to JPY6.59bn in the previous year. Finance costs also increased to JPY192.0m. After accounting for JPY304.0m worth of income tax, the overall losses for the company amounted to JPY577.0m, showing an improvement from the JPY6.36bn losses in 2020.
Okura Holdings acknowledged the challenges faced by the pachinko industry in Japan, including increasing competition from other entertainment options and regulatory measures to reduce the gaming element. The industry’s decline was further accelerated by the outbreak of COVID-19 in January 2020. The temporary closure of all entertainment facilities, including pachinko halls, in mid-April and May 2020 significantly impacted the number of pachinko and pachislot players.
