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GENDA Revenue Surges 40% as Arcade Operator Expands U.S. Footprint

The company's overseas operations drive growth with anime-themed prizes boosting performance
Japan
g 9166.TSE Entertainment 100
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Japanese arcade operator GENDA Inc. reported first-quarter revenue of ¥157 billion ($1.02 billion), up 40.4% from the previous year, as the company’s aggressive U.S. expansion strategy begins to pay dividends.

Operating profit climbed 32.6% to ¥10.5 billion ($68.2 million), while net income surged 53.7% to ¥5 billion ($32.5 million) for the quarter ended April. The Tokyo-based company, which acquired Sega’s Japanese arcade operations in 2020, has been rapidly expanding through acquisitions.

The company’s U.S. expansion accelerated through its National Entertainment Network subsidiary, which has completed machine swaps at 515 mini-locations. GENDA’s American operations showed remarkable growth, with same-store sales jumping 110% after replacing standard crane machines with Japanese-style units featuring kawaii merchandise.

The company plans to capitalize further on rising anime popularity by introducing highly anticipated Japanese intellectual property including Sanrio characters and Godzilla merchandise starting in late June. The strategy targets customer acquisition and increased visit frequency as GENDA seeks to replicate its Japanese success formula overseas.

GENDA’s overseas expansion has been fueled by strategic acquisitions including Player One Amusement Group, which added operations across the U.S. and Canada to the company’s growing North American network.

The company’s SMART EXCHANGE foreign currency business also delivered strong performance, achieving consecutive record monthly sales as inbound tourism demand recovered. The service supports overseas mergers and acquisitions evaluation in U.S. dollars and compliance functions in euros.

Despite the strong quarterly performance exceeding budget, GENDA maintained its full-year guidance, citing acquisition-related costs and seasonal business patterns. The company noted that first-quarter progress rates appear modest at 21.8% of annual revenue targets, but management expects the typical concentration of arcade and karaoke earnings in the second half to become more pronounced this fiscal year.

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