Okura Holdings Reports US$2.6 Million Loss from COVID-19 Impact
Japan’s leading pachinko parlor operator Okura Holdings has announced expected losses of at least 300 million yen ($2.6 million) for the six months through December 31, 2021, impacted by the COVID pandemic. -19.
The loss continues a downward trend for Okura, which posted a small profit of JPY 36 million (USD 312,000) in the year-ago period.
The company said on Monday that its recent loss was primarily attributable to impairments on its property, plant and equipment, intangible assets and right-of-use assets, “given unfavorable market conditions in the pachinko industry and the continued uncertainty in the commercial performance of the Group’s pachinko parlors caused by the prolonged impact of COVID-19 and its new variants in Japan.
There were also losses on the fair value of financial assets due to market fluctuations, partially offset by gains on the release of rental debts after Okura closed three of its pachinko parlors from August 31. 2021.
The company announced last year that its “Big Apple. Dazaifu” in Fukuoka, “Big Apple. Sumiyoshi Hall” in Nagasaki and Monaco Sumiyoshi Honten Hall in Nagasaki would cease operations due to poor performance, after showing a deterioration in operational and financial performance since the outbreak of Coronavirus Disease 2019 in Japan in January 2020 and the resulting low overall customer traffic since the start of 2020.”
Final results for the six months to Dec. 31, 2021 will be released by the end of February, Okura said.