JCM halves-year operating profit surges 235%; upgrades full-year forecast

Japan Cash Machine Co Ltd (JCM), a Japan-based maker of casino equipment, reported a 234.9-percent year-on-year increase in operating profit for the six months to September 30, to nearly JPY2.75 billion (US$17.3 million), the company said in a Tuesday filing. Group-wide net sales for the April–September period rose 39.4 percent year-on-year, to just under JPY20.59 billion.

Financial results for the six months to September 30

Despite the strong revenue and operating-profit growth, JCM reported a 35.1-percent decline in net profit attributable to shareholders, to JPY2.14 billion, primarily because the prior-year period included a significant one-off gain from the sale of non-current assets that did not recur. Ordinary profit increased 168.8 percent year-on-year to approximately JPY2.72 billion.

The global gaming segment generated JPY14.33 billion in sales, up 46.6 percent from a year earlier, driven by what the company described as “strong sales of bill validator units and printer units, particularly in North America, as well as increased sales in Europe.” Gaming-segment profit rose 67.7 percent year-on-year to JPY3.71 billion.

JCM said capital investment in gaming areas at casino hotels and other facilities “remained at a high level,” which supported ongoing demand for its gaming-related equipment. The company noted it focused on expanding sales of core products and promoting market penetration of a new bill validator model; it is currently rolling out the iVIZION 2 bill validator, designed to handle the latest banknote security features. In a September interview with GGRAsia, Dave Kubajak, senior vice president of sales, marketing and operations, said the product was already being shipped to customers, with target markets including Australia, Macau, Taiwan, Singapore and Malaysia.

International and domestic commercial segments

Sales in the international commercial segment more than doubled to JPY4.12 billion, reflecting increased demand for bill recycling units in Europe and contributions from a business acquired from Fujitsu Frontech Ltd in July. The international segment narrowed its loss to JPY35 million, from JPY561 million a year earlier, despite transition costs linked to the acquisition.

The domestic commercial segment recorded a loss of JPY190 million, compared with a profit of JPY87 million a year earlier, while domestic commercial sales fell 29.5 percent. The group also reported a JPY218-million foreign exchange loss in the latest period, versus a JPY55-million foreign exchange gain a year earlier.

Revised full-year outlook and dividends

JCM revised up its earnings forecast for the fiscal year ending March 31, 2027. The company now expects full-year operating profit of JPY4.90 billion, up 63.3 percent from its previous forecast of JPY3.00 billion. Net profit forecast was raised 69.6 percent to JPY3.90 billion, while sales guidance was unchanged at JPY39.00 billion. JCM increased its projected annual dividend to JPY73 per share from JPY46, including a revised year-end dividend of JPY50 per share.