Japan Cash Machine Co Ltd, also known as JCM Global, reported a net profit of just below JPY4.10 billion (US$26.9 million) in the nine months to December 31. Such profit was up 143.0 percent year-on-year, the firm said in an earnings report published last week.
JCM, a firm listed on the Tokyo Stock Exchange, makes machines that validate banknotes and handle currency, and also manufactures printers for casino gaming machines and other gaming hardware-related devices.
The company reported net sales of nearly JPY30.33 billion for the April to December period, up 36.1 percent from a year earlier.
Operating income for the reporting period stood at just above JPY4.80 billion, up 140.4 percent from the prior-year period. The company said that was “primarily due to increased sales of high-margin products related to the issuance of new banknotes, which sustained demand through the [company’s fiscal] second quarter”.
Japan issued its first new banknotes in two decades in July. They incorporate new technology designed to curb counterfeiting.
Sales in the group’s global gaming business rose by 41.4 percent year-on-year in the nine months to December 31, to just under JPY16.40 billion; and segment profit was just under JPY3.60 billion, up 86.7 percent from a year ago.
JCM said sales of its bill validator units and printer units for use in casino gaming machines “increased” in the North American and European markets.
It added: “In the gaming market, which is the core market for the group, capital investment demand in casino hotels and other facilities remained at a high level.”
The firm said that in its gaming segment, it “conducted multifaceted marketing activities, including proposing system products tailored to customer needs”.
JCM added: “We carried out promotional activities for new high-value-added products that contribute to the automation and labour-saving of money-handling operations in casino halls.”
In the international commercial market, the company said it “promoted sales strategies aimed at further expanding the market share of our products in the European and Asian regions”.
JCM also revised its earnings forecast for the fiscal year ending March 31, 2025. The company now expects annual sales to reach JPY38.00 billion, up from a previous estimate of JPY37.50 billion.
The firm’s net profit forecast for the 12 months to March 31 this year has been revised to JPY3.90 billion, from a prior estimate of JPY3.10 billion.
“While net sales are expected to see only a slight increase, the proportion of high-margin products related to the issuance of new banknotes has increased, leading to an anticipated improvement in operating profit and subsequent profit figures compared to the previously announced forecast,” stated the company.
In December, JCM said it expected its overall sales in the second half of its financial year to “slow down compared to the first half”. That was mainly “due to the end of the special demand” associated with the issue of new domestic banknotes, observed the company.
JCM posts net profit of US$27mln in 9 months to Dec, as sales up 36pct
