Tsuburaya Fields Holdings reported a dramatic surge in first-quarter profits as its pachinko machine sales defied an industry-wide downturn that has persisted for nearly two decades.
The Tokyo-based company posted ¥7.81 billion ($52 million) in operating profit for the three months through June, more than tripling from the previous year. Revenue jumped 112% to ¥55.55 billion ($370 million), driven largely by its amusement equipment division selling approximately 95,000 units and capturing a 26% market share.
The strong performance stands out in Japan’s beleaguered pachinko industry, where the number of parlors has plummeted from 18,244 in the 1990s to fewer than 8,000 today. Research forecasts the sector will continue shrinking until 2028, with parlor numbers expected to drop to around 5,900.
Tsuburaya Fields benefited from popular intellectual property tie-ins and increased production of previously launched machines. However, its content division struggled with a 58% drop in operating profit as counterfeit Ultraman products proliferated in China, forcing the company to strengthen enforcement measures.
The company maintained its full-year guidance of ¥150 billion ($1 billion) in sales and ¥16 billion ($107 million) in operating profit, suggesting management remains cautious despite the strong quarter.
