GENDA Co., Ltd. has raised its full-year sales forecast for the fiscal year ending January 2025 to ¥110 billion (US$753 million), a 10% increase from its previous projection. The company attributes the upward revision to stronger-than-expected performance in its amusement facilities, particularly crane games and karaoke, and contributions from multiple recent acquisitions. Despite higher sales, GENDA kept its profit forecasts unchanged, anticipating operating profit of ¥7 billion and net profit of ¥4.3 billion.
For the second quarter, GENDA reported sales of ¥49.5 billion, a 102% increase year-on-year, driven by the popularity of its amusement centers and karaoke locations. However, operating profit grew at a slower pace, rising 15% to ¥3.18 billion, while net profit fell 28.8% to ¥1.41 billion. The decline in net profit was primarily due to higher post-merger integration (PMI) expenses and increased corporate taxes following capital increases.
The company has been actively expanding its business through acquisitions, adding 76 new amusement locations this year, including 64 through M&A. GENDA also reorganized its internal structure to streamline operations and strengthen profitability. Despite the short-term impact on profits, the company continues to push forward with its “entertainment economic sphere” strategy, integrating its businesses across the amusement, karaoke, and food and beverage sectors.
