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HONG KONG, Apr 8, 2015 - (ACN Newswire) - The shares of NIRAKU GC HOLDINGS, INC.1("NIRAKU" or the "Group"), the fourth largest pachinko hall operator in Japan2 and the largest pachinko hall operator in Fukushima Prefecture3, commenced trading on the Main Board of The Stock Exchange of Hong Kong Limited ( "HKSE") today.
NIRAKU had a total of 55 pachinko halls in operation, consisting of 46 suburban halls and 9 urban halls as at 15 March 2015. Since the Group opened its first pachinko hall in 1950, the Group has strategically focused its operations in Northeast Honshu, the most populated island of Japan. In particular, the Group's primary focus is its suburban pachinko halls, which enable the Group to benefit from various factors: (1) land costs are relatively lower than urban areas; (2) there are significantly less gaming and entertainment options available than in urban areas; (3) the customer base is generally more stable; and (4) the working population (being one of NIRAKU's target demographics) is expected to increase.
Pachinko is one of the most popular forms of entertainment for adults in Japan. According to EBI, the pachinko industry dominated Japan's gaming industry, representing 78.0% or JPY 18.8 trillion of its total gross revenue in 2013. Smaller operators in the pachinko industry are being pushed out of business by large competitors (such as the Group) with greater financial, staff and other necessary resources and operational experience; hence benefitted by absorbing such freed up market share. As at 31 December 2013, there were over 3,800 operators, of which 95.8% were small hall operators with less than 10 halls and the Group was one of only eight hall operators with over 50 halls.
Since the earthquake in 2011, there has been a growth in the working population of Fukushima Prefecture, mainly due to rebuilding efforts. At the same time, the general public was also more willing to spend time in pachinko halls to experience the sense of community, which brought about more spending in the NIRAKU's halls. Revenue of the Group actually improved compared to the financial year preceding the earthquake, while for the financial year ended 31 March 2012, profit had already rebounded to levels exceeding that of the financial year preceding the earthquake.
To attract more younger pachinko customers for the Group and the pachinko industry as a whole, NIRAKU will launch an online general prize redemption system that offers customers a significantly wider range (in terms of both quantity and variety) of general prizes, and provides a high level of convenience for its customers with its delivery service for exchanged general prizes. In addition, leveraging its strengths and strong brand recognition, NIRAKU will continue to expand its suburban halls network in Northeast Honshu by opening 7 new suburban halls over the next three years. In particular, a new hall in Fukushima Prefecture to be opened by December 2015 will have over 1,000 machines and is expected to be one of the largest halls in Fukushima Prefecture.
1For identification only
2Based on gross revenue in 2013, according to Entertainment Business Institute1("EBI")
3Based on number of halls as at 31 December 2013, according to EBI
Contact:
Strategic Financial Relations Limited
Vicky Lee +852 2864 4834 / 9471 2009 vicky.lee@sprg.com.hk
Cindy Lung +852 2864 4867 / 9282 4640 cindy.lung@sprg.com.hk
Rita Fong +852 2114 4939 / 9325 3545 rita.fong@sprg.com.hk
www.sprg.com.hk
Topic: Press release summary
Source: NIRAKU GC HOLDINGS, INC.
Sectors: Daily Finance
https://www.acnnewswire.com
From the Asia Corporate News Network
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