One of the leading casino operators in Japan, the Okura Holdings Limited has just recently released its profit warning following releasing news that the company expects a massive comparable decline of around 83% in its earnings before taxation for a period of eleven months until the end of May. According to one related post released by Inside Asian Gaming, this Hong Kong-listed company used one of its official fillings to share more details about the expected comparable decline in its earnings.
The biggest reason behind issuing its profit warning is to advise all o sots investors to remain cautious when dealing with the company’s shares during these rough times caused by the ongoing coronavirus pandemic. The company’s officials also released that Okura Holdings Limited generated around $9.2 million in earnings for the previous financial period. However, while the latest profit warning raises fears that it may struggle greatly to reach $2 million which is a massive drop when compared to $9.2 in profits for the previous financial period.
Okura Holdings Limited Responsible for Seventeen Pachinko Halls
Okura Holdings Limited is one of the major pachinko halls and casino operators in Japan. As of the 16th of April 2018, Okura Holdings Limited is responsible for seventeen pachinko halls which are located across different locations in Japan. The company particularly focuses on the Kyushu region where many of its pachinko halls are located. Either way, customers at its pachinko halls get to play both pachislot and pachinko games which are among the most popular entertainment forms in Japan.
The company opened its very first gaming venue in Nagasaki back in 1968 which means Okura Holdings Limited is among those long-standing gambling operators in Japan. Nagasaki is also home to the company’s main office. Back in 2003, the company has expanded into the thriving Kanto region following its major success in the Kyushu region.
Almost ten years later in 2012 Okura Holdings Limited opened its gaming facility in the Kansai region and one in the Chugoku region back in 2016. All in all, Okura Holdings Limited has gone a long way from its Monaco Hall that opened in 1968 as today it is one of the major nationwide pachinko hall operators with seventeen pachinko halls.
Considerable Decline Post-Coronavirus Pandemic
Okura Holdings Limited surely raised many eyebrows after deciding to keep its seventeen pachinko halls across the nation open ever after the Japanese government decided to put the nation into a state of emergency due to the ongoing coronavirus pandemic. The vast majority of such venues temporarily shutter form the 7th of April while Okura Holdings Limited decided to suspend its business operations at facilities in Tokyo and Yokohama several days later before shuttering all of its seventeen properties across the nation.
In its latest profit filling, the company’s officials stated that their predicted declines in the company’s yearly earnings are generally attributable to a massive decline in the company’s revenues caused by lockdowns and other measures that came with the coronavirus outbreak. The company also stated that it expects to record impairment losses on its equipment, plant, property, and other assets for a period of twelve months until the end of this month.
At the moment, the company is still working on assessing the exact amount of its expected impairment losses while it also works on its post-coronavirus plan and how to get back in the game after all coronavirus-related measures are lifted by the nation’s government.