Okura’s profits drop by 83%
Okura Holdings, a Japanese pachinko hall operator, issued a profit warning that stated the company’s 83% drop in profits (before income tax). The statement encompasses 11 months of operations, ending on 31 May 2020. The fall is tied to the safety measures the country implemented to battle the pandemic.
The company issued a statement that explained the decline was “mainly attributable to the drop in revenue as a result of the temporary closure of all 17 pachinko halls of the Group during various periods between April and May.”
Japanese Prime Minister Shinzo Abe originally declared a state of emergency on 7 April. But Okura resisted the decision and wanted to keep pachinko halls open since the state of emergency was more of a suggestion than law, and the government couldn’t directly order closing businesses. However, all 17 of the company’s venues eventually closed its doors mid-April.
The company’s profit last year was JPY989 million (US$9.2 million), encompassing 12 months until 30 June 2019. It was a 15% increase compared to FY18. The group is aware the financial performance for this year “may deteriorate further”, adding “the directors anticipate that the Group’s performance for FY2020 will decline significantly compared to that for the year ended 30 June 2019.”
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