GGRAsia – JCM ups revenue, profit forecast on strong demand

JCM ups revenue, profit forecast on strong demand

Feb 20, 2024 Newsdesk Industry Talk, Latest News

Japan Cash Machine Co Ltd, also known as JCM Global, has revised upwards its estimates for revenue and net profit for the fiscal year ending March 31, 2024.

The company now expects to achieve net sales of JPY31.50 billion (US$209.7 million) for the 12 months to March 31, compared to a previous forecast of JPY30.20 billion, according to a recent filing.

Net profit is expected to reach JPY2.40 billion, a 20-percent increase from the previous forecast, made on November 8 last year.

For the fiscal year ended in March 2023, JCM reported net profit of JPY3.15 billion, on revenue of nearly JPY25.26 billion.

JCM, a firm listed on the Tokyo Stock Exchange, makes machines that validate banknotes and handle currency, as well as printers for casino gaming machines and other gaming hardware-related devices.

“Both net sales and profits … are expected to be higher than the previous forecast due to an increase in demand for our products beyond what was assumed at the time of such announcement, mainly due to strong demand for capital investment in the North American and European regions,” stated the company in its recent announcement.

JCM also upped its dividend forecast for the fiscal-year end. It now expects to pay a dividend of JPY19.0 per share, up from a previous forecast of JPY7.0.

Together with an interim dividend of JPY7.0 apiece, the company expects to pay an aggregate dividend of JPY26.0 per share for the 12 months to March 31, 2024. The aggregate dividend in the previous fiscal year was JPY10.0.

JCM reported earlier this month a net profit of nearly JPY1.69 billion for the nine months to December 31, up 43.9 percent year-on-year. The company reported net sales of just above JPY22.28 billion for the period, a 17.3-percent increase from a year earlier.

Sales in the group’s global gaming business rose by 3.8 percent year-on-year in the April to December period, to just under JPY11.60 billion; and segment profit was nearly JPY1.93 billion, up 45.7 percent from a year ago. The firm said such performance was supported by “strong demand” for its “mainstay products, such as bill validator units and printer units”.

“Demand for capital investment in casino hotels in the North American and European gaming markets remained high due to the growth in global travel demand,” said JCM.

Last year, JCM said it was targeting net sales of JPY38.50 billion in the fiscal year ending March 2026, as part of the group’s medium-term management plan up to 2032.