GGRAsia – Konami gaming segment US$16mln profit for Apr-Sept

Konami gaming segment US$16mln profit for Apr-Sept

Nov 04, 2021 Newsdesk Industry Talk, Latest News, Top of the deck

Konami Holdings Corp reported on Thursday that it had swung back to segmental profit for its gaming and systems division – including casino equipment – in the six months to September 30. Such profit was nearly JPY1.83 billion (US$16 million), compared to a loss of JPY1.24 billion in the prior-year period.

The latest profit performance was on segmental revenue that rose by 71.7 percent, to JPY12.27 billion, from JPY7.15 billion in the same period of 2020.

The gaming and systems division of the Japanese entertainment conglomerate’s business includes the supply of casino slot machines and casino floor management systems.

In the casino gaming segment, Konami operates outside Japan via Konami Australia Pty Ltd and U.S.-based Konami Gaming Inc.

Konami Holdings said the segmental improvement in the gaming business was helped by relaxation of entrance restrictions on casino facilities in North America, resulting in that market “revitalising”.

The company also said the “strong performance” of its casino management system product seen in the previous fiscal year was “maintained” during the latest reporting period. During the three months to September 30, several installments of Konami’s casino management system, Synkros, “contributed to revenue” for the segment. That included such product placed at the Resorts World Las Vegas casino complex in Nevada in the United States, according to Konami’s results statement.

Konami anticipated further installations of the Synkros system in casinos in North America and Australia, during its current fiscal year, which runs to March 30, 2022.

The group also said it planned new functions for Synkros. These included: Synk Vision, which would verify player identity via “the latest biometric authentication” technology; SYNK31, described as a “money laundering prevention system”; and Quick Play, for cashless gaming within casinos.

The company further stated it would add content to its latest Dimension series cabinets. Konami also planned to enter the market for so-called Class II slot machines permitted in casino facilities operated by tribal gaming operators in North America.

Konami’s group-wide profit for the six months to September 30 jumped to nearly JPY27.56 billion, from JPY13.79 billion in the prior-year period. The group’s revenue for the reporting period was nearly JPY139.49 billion, up by 20.2 percent from JPY116.07 billion in the prior-year period.

The biggest contribution to Konami’s group-wide revenue came from the digital entertainment division, which generated JPY98.63 billion in the reporting period, up by 11.7 percent when compared to the prior-year record.