Financial Performance - Total revenue for the first six months of fiscal year 2025 was approximately 3,188 million JPY, a slight decrease of about 3 million JPY or 0.1% from approximately 3,191 million JPY in the first six months of fiscal year 2024[11]. - Profit before tax decreased by approximately 482 million JPY or 44.1% to about 610 million JPY in the first six months of fiscal year 2025, primarily due to the absence of lease modification income recorded in the previous period[12]. - The profit attributable to the company's shareholders decreased by approximately 611 million JPY or about 54.7% to approximately 505 million JPY for the first six months of fiscal year 2025[38]. - Operating profit for the same period was ¥655 million, down 42.4% from ¥1,139 million year-over-year[88]. - The total comprehensive income for the six months ended December 31, 2024, was ¥502 million, down from ¥1,111 million in the previous period, reflecting a decline of about 54.9%[96]. - The company reported a profit of ¥505 million for the six months ended December 31, 2024, compared to a profit of ¥1,116 million for the previous period, indicating a decrease of approximately 54.7%[96]. Revenue Streams - Revenue from the Japanese-style pachinko and pachislot business accounted for approximately 92.0% of total revenue in the first six months of the 2025 fiscal year, compared to 92.4% in the same period of the previous year[22]. - The company continues to diversify its revenue streams, earning income from various sources including vending machines and rental properties in the first six months of fiscal year 2025[13]. - Revenue from vending machines slightly decreased by about 3 million yen or 6.0% to approximately 47 million yen in the first six months of the 2025 fiscal year[23]. - Property rental income increased by approximately 14 million yen or 7.3% to about 205 million yen in the first six months of the 2025 fiscal year, driven by new tenants and changes in parking revenue[23]. - The revenue from the Japanese pachinko and pachislot business was ¥2,981 million, down from ¥2,998 million year-over-year, indicating a 0.6% decrease[128]. Operational Changes - The company launched new gaming machines, including the "6.5 model slot machine" in June 2022, the "smart slot machine" in November 2022, and the "smart pachinko machine" in April 2023, contributing to a recovery in customer traffic[10]. - The introduction of the "Lucky Trigger" feature in new pachinko machines is expected to attract younger customers and increase overall usage rates in gaming halls[10]. - Customer traffic in urban areas has shown a stable recovery during the first six months of fiscal year 2025[10]. - The company plans to continue monitoring the performance of smart machines and implement appropriate marketing strategies to enhance customer attraction[18]. - The closure of the K's Plaza Ohato location in January 2024 resulted in a revenue decrease of approximately 150 million yen, which was partially offset by increased revenue from other locations[22]. Cost Management - Operating expenses for gaming halls decreased by approximately 498 million JPY, and administrative expenses decreased by about 75 million JPY, partially offsetting the profit decline[12]. - Operating expenses for Japanese pachinko and slot machines reduced to ¥1,203 million in 2024, down from ¥1,536 million in 2023, reflecting a decrease of approximately 21.7%[135]. - Total employee costs reached approximately 520 million yen in the first six months of FY2025, accounting for about 19.2% of total operating expenses, compared to 16.8% in the same period of FY2024[62]. Investment and Assets - The company completed the necessary capital investments to update its pachinko and pachislot machines to be compatible with new banknotes by June 30, 2024, ahead of the new banknote issuance in July 2024[19]. - Capital expenditures for the first six months of fiscal year 2025 were approximately 148 million JPY, significantly lower than approximately 1,259 million JPY for the same period in fiscal year 2024[52]. - Total assets as of December 31, 2024, were ¥18,210 million, a decrease from ¥18,470 million as of June 30, 2024[130]. - The group held investments totaling approximately 2,972 million JPY in investment properties and approximately 1,104 million JPY in financial assets as of December 31, 2024[54]. Financial Position - As of December 31, 2024, the total borrowings amounted to approximately 4,685 million JPY, a decrease from approximately 4,987 million JPY as of June 30, 2024[40]. - The company's cash and cash equivalents were approximately 2,956 million JPY as of December 31, 2024, down from approximately 3,049 million JPY as of June 30, 2024[44]. - The asset-liability ratio was approximately 35.6% as of December 31, 2024, down from approximately 39.3% as of June 30, 2024[49]. - The group’s equity attributable to shareholders was approximately 8,271 million JPY as of December 31, 2024, an increase from approximately 7,769 million JPY as of June 30, 2024[45]. Governance and Compliance - The company’s governance structure has been deemed effective, with the board ensuring a balance of power and responsibilities[77]. - All directors confirmed compliance with the standard code for securities trading during the first six months of fiscal year 2025[78]. - The audit committee reviewed the interim financial data and found no significant issues regarding compliance with accounting standards[85]. Future Outlook - The group’s revenue growth for the twelve months ending December 31, 2025, is projected to be -1%, with a subsequent growth of 0% until the respective cash-generating units' useful life ends[39]. - The company is exploring new opportunities to expand into other business areas to diversify its revenue sources[21]. - Management forecasts a revenue growth rate of -1% for the first year, with a range of -3% to -5% for June 30, 2024[147].
OKURA HOLDINGS(01655) - 2025 - 中期财报