FINANCIAL REVIEW

Revenue from Pachinko and Pachislot Business
Revenue from pachinko and pachislot is derived from gross pay-ins netted with gross pay-outs.

Revenue from pachinko and pachislot business increased by ¥2,049 million, or 9.3%, from ¥21,895 million in 2023 to ¥23,944 million in 2024. The increase in revenue was attributable to the continued recovery of economy in Japan, and replacement of gaming machines which triggered higher customer turnover and improved the hall traffic.

Gross pay-ins
For the year ended 31 March 2024, the Group’s gross pay-ins from pachinko and pachislot business amounted to ¥131,835 million, comprising revenue from 47 suburban halls and 2 urban halls. The increase in gross pay-ins by ¥11,998 million, or 10.0%, as compared to last year was resulted from the factors explained above.

Gross pay-outs
Gross pay-outs, being the aggregate cost of G-prizes and general prizes exchanged by customers, increased from ¥97,942 million in 2023 to ¥107,891 million in 2024, an increase of ¥9,949 million, or 10.2%, which corresponded to the rise in gross pay-ins.

Revenue margin
Revenue margin recorded at 18.2% for the year ended 31 March 2024, which was relatively stable as compared to 18.3% in 2023. The management continued to review pay-out ratio to stimulate customers’ visit and improve revenue margin.

Revenue from Amusement Arcade Business
Revenue from amusement arcade business decreased by ¥23 million or 1.3%, from ¥1,710 million in 2023 to ¥1,687 million in current year. The amount comprised revenue derived from Vietnam and Cambodia amounting to ¥1,135 million and ¥552 million, respectively (2023: ¥1,316 million and ¥394 million, respectively). The slight decrease in revenue was resulted from the drop in sales income generated from Vietnam as one of the popular game machines was discontinued during the year, netted with additional income generated from two amusement arcades which were newly opened in Cambodia at the end of 2022.

Other revenue
Other revenue represents incomes from vending machines, hotel and restaurant operations.

Vending machines income amounted to ¥453 million in 2024. The increase of ¥75 million as compared to ¥378 million in 2023 was resulted from the increase in customer turnover rate as mentioned above.

Income from hotel operation amounted to ¥163 million in 2024, recording an increase of ¥14 million as compared to 2023 of ¥149 million. The increase in hotel income was resulted from mild increase in occupancy rate by 4% as compared to last year.

Revenue from restaurant operations amounted to ¥708 million for the year ended 31 March 2024, increased by ¥228 million, or 47.5%, as compared to ¥480 million in last year. The increasing popularity of “KOMEDA” café, and the opening of a “LIZARRAN” restaurant in early 2023 were the main drivers to the revenue increase in this sector.