Okura Holdings (01655) reported steady interim results for the six months ended 31 December 2025 (“6M2026”). Revenue rose 5.2% year-on-year to ¥3.35 billion, driven mainly by higher customer traffic and the popularity of newly introduced Smart Slot and Smart Pachinko machines.

\n\n• Pachinko & Pachislot Halls  – Core hall revenue grew 4.5% to ¥3.07 billion, representing 91.4% of group turnover.  – Gross pay-ins increased 4.2% to ¥16.69 billion, while gross pay-outs were up 4.1% to ¥13.62 billion.  – Revenue margin held broadly stable at 18.4% (6M2025: 18.3%).

\n\n• Other Income Streams  – Property rental income advanced 9.3% to ¥224 million after securing new tenants.  – Vending machine income inched up 6.4% to ¥50 million.  – Other operations contributed ¥13 million (6M2025: ¥2 million) following improvements in motor-vehicle rental and retail activities.

\n\n• Profitability  – Profit before tax increased 1.3% to ¥618 million.  – Net profit attributable to shareholders grew 4.0% to ¥525 million, reflecting tighter cost control and modest finance expenses.  – Hall operating expenses rose 5.2% to ¥2.47 billion, largely due to higher machine procurement and staff costs. Administrative and other expenses were up 18.6% to ¥421 million, including consultancy fees for advertising and AI research.

\n\n• Balance Sheet & Liquidity  – Cash and cash equivalents stood at ¥2.82 billion; short-term deposits remained at ¥0.10 billion.  – Total borrowings declined to ¥3.82 billion (30 June 2025: ¥4.21 billion); gearing ratio improved to 36.0% from 43.9%.  – Pledged assets amounted to ¥7.36 billion, mainly property and investment properties.

\n\n• Capital Expenditure & Impairment  – Capex reached ¥262 million, primarily for new machines and hall fixtures.  – An impairment loss of ¥79 million was recognised on an investment property; no impairment was booked for pachinko hall CGUs.

\n\n• Equity & Financing Activities  – In December 2025, the company placed 35.02 million new shares, raising net proceeds of HK$6.10 million; 50% earmarked for new machines, 30% for hall upgrades and marketing, and 20% for working capital.  – Post-period, an additional placement of 84.98 million shares was completed on 13 February 2026.

\n\n• Operational Highlights  – Smart Slot machines now represent 65.1% of installed slots; Smart Pachinko machines account for 29.2% of pachinko units. Combined, smart formats constitute 46.5% of total installed machines.  – System upgrades for Japan’s new banknotes were completed ahead of schedule, positioning the group to capture market share as smaller operators face higher compliance costs.

\n\n• Dividend  – The board did not declare an interim dividend.

\n\nOkura Holdings plans to continue upgrading machine portfolios, leverage digital marketing to attract younger players, and seek further revenue diversification while maintaining a conservative capital structure.