JCM half-year operating profit more than triples, firm lifts full-year forecast

Japan Cash Machine Co Ltd (JCM), a Japan-based maker of casino equipment including bill validators and ticket printers, reported a 234.9-percent year-on-year increase in operating profit for the six months to September 30, to nearly JPY2.75 billion (US$17.3 million), supported by strong demand for gaming-related products. The company, also known as JCM Global, said in a Tuesday filing that group-wide net sales in the April to September period rose 39.4 percent year-on-year, to just under JPY20.59 billion. Despite the revenue growth, JCM reported a 35.1-percent decline in net profit attributable to shareholders, to JPY2.14 billion. The decrease was mainly due to the absence of a significant one-off gain from the sale of non-current assets recorded in the prior-year period. Ordinary profit for the latest six months increased 168.8 percent year-on-year, to approximately JPY2.72 billion. The group’s global gaming segment generated sales of JPY14.33 billion, up 46.6 percent from a year earlier. That was driven by “strong sales of bill validator units and printer units, particularly in North America, as well as increased sales in Europe,” the company said. Gaming segment profit rose 67.7 percent year-on-year, to JPY3.71 billion. JCM said capital investment in gaming areas at casino hotels and other facilities “remained at a high level,” supporting continued demand for gaming-related equipment. The company also said it focused on expanding sales of its core products and promoting market penetration of a new bill validator model. JCM is currently rolling out its new iVIZION 2 bill validator, designed to handle the latest banknote security features. In a September interview with GGRAsia, Dave Kubajak, the company’s senior vice president of sales, marketing and operations, said the product was already being shipped to customers, with markets including Australia, Macau, Taiwan, Singapore and Malaysia among those targeted for its introduction. In the group’s international commercial segment, sales more than doubled to JPY4.12 billion, reflecting increased demand for bill recycling units in Europe and contributions from a business acquired from Fujitsu Frontech Ltd in July. The international segment narrowed its loss to JPY35 million, from JPY561 million a year earlier, despite transition costs associated with the acquisition. JCM’s domestic commercial segment recorded a loss of JPY190 million, compared with a profit of JPY87 million a year earlier, while sales fell 29.5 percent. The company also reported a JPY218-million foreign exchange loss in the latest reporting period, compared with a JPY55-million foreign exchange gain a year earlier. JCM announced on Tuesday an upward revision to its earnings forecast for the fiscal year ending March 31, 2027, citing stronger-than-expected profitability and continued demand in the global gaming market. The company now expects full-year operating profit of JPY4.90 billion, up 63.3 percent from its previous forecast of JPY3.00 billion. Its net profit forecast was raised 69.6 percent, to JPY3.90 billion, while the sales forecast was maintained at JPY39.00 billion. JCM said the unchanged sales projection reflected refunds to customers following the reimbursement of tariffs previously incorporated into selling prices in response to United States trade measures. The company also increased its projected annual dividend to JPY73 per share, from JPY46 previously, including a revised year-end dividend of JPY50 per share.