Summary of Research Findings

For this research, 110 pachinko parlor operators were randomly selected from a total of 1,688 pachinko parlor operators nationwide listed in the “YANO Pachinko Database”. We analyzed the business performance trends over the three years from FY2021 to FY2023 based on the average value of key indicators based on the financial information of those operators.

In FY2023, the average amount of sales of the 110 companies was 18,410 million yen. On average, the cost of sales was 15,820 million yen (85.9% as a composition ratio), SG&A was 2,437 million yen (13.2%), and operating profit was 153 million yen (0.8%).

In FY2022, sales declined by 0.6% from the preceding fiscal year, but they increased by 7.1% in FY2023. The introduction of “smart pachislot” in November 2022 was well received. Full adoption of this electronic game contributed to the outstanding recovery of the pachislot business in FY2023, increasing sales. In contrast to the solid comeback of the pachislot business, the pachinko business has been struggling, prompting parlor operators to invest more in the pachislot section.  

Noteworthy Topics

Financial Performance Trend of 110 Pachinko Parlor Operators

[Sales & Cost of Sales]
Sales of pachinko parlor operators increased by 7.1% year on year in FY2023. The recovery of the pachislot section stemming from the introduction of smart pachislot contributed to the increase in sales. Proactive investment in the pachislot section is necessary to ensure sales in the future.
The composition ratio of cost of sales in FY2023 remained the same as that in the previous fiscal year at 85.9%. It has been maintained above 85% for several years.

[Gross Margin]
As the composition ratio of cost of sales in FY2023 was the same level as that of the previous fiscal year, the composition ratio of gross margin was also the same as that of the previous fiscal year at 14.1%. As sales increased by 7.1% year on year, gross margin also increased remarkably by 7.0% year on year.

[SG&A Expenses]
Although SG&A expenses in FY2023 were 1.3% higher than in the preceding year, their composition ratio was 13.2%, down 0.8 percentage points from the previous year. However, this level is undoubtedly still high, as the composition ratio of SG&A expenses in FY2019 (from the 2022 survey, in which different companies were included in the tabulation) was 12.5%.

[Operating Profit]
Operating profit in FY2023 increased tremendously compared to the previous fiscal year. However, the composition ratio remained at 0.8%, still not reaching 1%.

Research Outline