GENDA Co. reported its third-quarter revenue doubled to 77.6 billion yen ($530 million) as Japan’s leading arcade operator expanded through acquisitions and new store openings.
Operating profit rose 30% to 5.4 billion yen in the nine months through October, while net income fell 20% to 2.7 billion yen, the Tokyo-based company said in a statement Monday.
The entertainment company added 85 gaming centers during the period, bringing its total to 358 locations across Japan and overseas markets. GENDA’s flagship store in Osaka’s Dotonbori district, which opened in August, posted record monthly sales in September.
The company strengthened its position beyond arcades by acquiring karaoke operator Shin Corporation in February and adding sound equipment provider Ontu Group in October. These moves expanded GENDA’s consolidated subsidiaries to 29 companies.
In overseas markets, its U.S. subsidiary Kiddleton aggressively expanded unmanned gaming corners by 359 locations. GENDA also entered Vietnam with two new stores and opened five locations in Taiwan.
The company maintained its full-year forecast for revenue of 110 billion yen and operating profit of 7 billion yen. The stock trades at 51 times estimated earnings.
