Improving and enhancing the earnings structure of the Japan operations

「The dedicated crane-game area “とれすぎ～のアイランド,” featuring prizes such as food and daily necessities, and collaboration campaigns performed well.」

「As our Group's primary customer base is young people and our principal business is providing location-based entertainment services such as bowling, amusement and karaoke, as well as Spo-cha, we recognize establishing a revenue structure capable of withstanding changes in customer needs as an important issue, and will implement the following measures.」

「Against this backdrop, demand for crane games remained strong in Japan, so we offered a wide variety of prizes and worked to increase sales. We also conducted limited-time collaboration campaigns with various content providers and campaigns for children and elementary and junior high school students, as well as remote events using ROUND1 LIVE, thereby developing initiatives for a broad range of age groups.」

「Against this backdrop, demand for crane games remained strong in Japan, so we increased the number of mini crane game machines and expanded our offerings with a wide variety of prizes. We also actively conducted limited-time collaboration campaigns with artists, virtual YouTubers and anime content to attract more visitors. In addition, we reviewed our pricing in light of recent economic conditions.」

「As demand for crane games continued to show a strong trend, the company opened Crane Game Park Machida Jorna in Tokyo as its second crane-game specialty store. In addition to the large plush toys and miscellaneous goods that have traditionally been popular prizes, it increased the number of mini crane game machines at each store to offer many small mascot figures and other prizes, creating a diverse prize lineup. It also continued collaboration campaigns with popular anime titles, games and artists, offering benefits such as exclusive footage in collaboration rooms that can only be experienced at the company’s stores and distributing collaboration-limited merchandise to develop new customer segments. In amusement, it introduced medal games and arcade games released during the current interim consolidated accounting period, and at Spo-cha it introduced the latest interactive items, including “Dekaぁぁ Volleyball,” to increase sales.」

「In Japan, anticipating growth in the crane game market, the company expanded renovations into “Giga Crane Game Stadium” locations and established an operating structure covering all 76 stores. It also conducted limited-time collaboration campaigns with artists, idols, virtual YouTubers and anime titles to develop new customer segments and improve performance. In addition, it reviewed prices for bowling and Spo-cha in light of economic conditions.」

「In Japan, the Group opened Crane Game Park Chofu Station Front, its first crane-game specialty store, in July 2023 and continued progressively renovating selected stores into “Giga Crane Game Stadium” locations. It also worked to improve performance through limited-time collaboration campaigns with artists and anime titles and nationwide television commercials.」

「The company continued progressively renovating selected stores into “Giga Crane Game Stadium” locations and expanded the variety of crane game prizes available. In addition to airing commercials featuring global boy group “JO1,” it actively conducted collaboration campaigns with anime content and idol groups to develop new customer segments. As a result, bowling revenue increased 11.8% year on year, amusement revenue increased 10.1%, karaoke revenue increased 24.9% and Spo-cha revenue increased 21.7%.」

「As the Group’s primary customer base is younger people and its main business is providing visit-based entertainment services such as bowling, amusement, karaoke and Spo-cha, it recognizes establishing an earnings structure capable of withstanding these changes as an important issue and will implement the following measures.」

「Against this backdrop, in Japan the Group continued progressively renovating selected stores into “Giga Crane Game Stadium” locations. It also held collaboration campaigns with popular virtual YouTubers and artists, and worked to improve performance by reviewing and renewing tournaments and campaigns in the bowling business.」

「The company continued progressively renovating selected stores into “Giga Crane Game Stadium” locations. It also pursued performance improvements through limited-time collaboration campaigns with artists and anime titles and nationwide television commercials featuring talent. In light of higher raw material and other costs, it reviewed prices at facilities other than amusement. As a result, bowling increased 63.2% year on year, amusement increased 59.1%, karaoke increased 168.1% and Spo-cha increased 68.0%.」

「The company substantially increased the number of crane game machines at selected stores and progressively renovated them into “Giga Crane Game Stadium” locations. It also began offering a service allowing customers to collect in-store prizes won through the online crane game “クレッチャ,” and launched an online shop within the “Round One app” selling Round One-exclusive collaboration products during events with artists, idols and anime titles. As a result, bowling revenue increased 68.3% year on year, amusement revenue increased 69.3%, karaoke revenue increased 139.2% and Spo-cha revenue increased 82.1%.」

「Ordinary profit for the fiscal year increased by ¥15,870 million from the previous fiscal year to ¥4,382 million, compared with an ordinary loss of ¥11,487 million in the previous year. This was despite voluntarily restricting operations in response to requests from the government and local authorities to reduce operating hours due to the spread of COVID-19, as consumer sentiment gradually recovered and the company received cooperation payments and other support from local authorities.」

「Against this backdrop, in Japan the Group opened E아s Kasugai in Aichi Prefecture in October 2021. In amusement, it introduced the latest machines, including “Chrono Circle,” a new original Round One music game. It also continued converting existing stores into Giga Crane Game Stadium locations. To secure a stable supply of attractive prizes suited to customer needs, the company acquired part of the common shares of SK JAPAN CO.,LTD. through an off-market negotiated transaction and made the company an equity-method affiliate.」

「Against this backdrop, in Japan the Group converted selected stores into Crane Game Parks and substantially increased the number of crane game machines. It also held remote events using “ROUND1 LIVE” and collaboration campaigns with “Jujutsu Kaisen.”」

「Against this backdrop, in Japan the Group continued holding events using “ROUND1 LIVE,” including “Bowling and Karaoke Student Koshien ONLINE” and “Remote Challenge.” It also launched the online crane game “クレッチャ” in April 2021. In addition, it continued discount campaigns such as “Student Geki-Wari” and “Elementary and Junior High School Student Geki-Wari,” allowing student customers to use bowling, karaoke and Spo-cha for ¥990 each. The company was also subject to restrictions, including temporary store closures and reduced operating hours, in accordance with requests from the government and local authorities. As a result, bowling revenue increased 102.0% year on year, amusement revenue increased 117.6%, karaoke revenue increased 66.4% and Spo-cha revenue increased 225.6%.」

「The COVID-19 pandemic increased the importance of contactless services delivered via the internet.」

「As a result, bowling declined 45.5% year on year, amusement declined 33.4%, karaoke declined 54.0% and Spo-cha declined 58.2%.」

「As a result, bowling declined 53.2% year on year, amusement declined 44.6%, karaoke declined 61.2% and Spo-cha declined 66.5%.」

「As a result, bowling declined 75.9% year on year, amusement declined 71.1%, karaoke declined 80.6% and Spo-cha declined 85.1%.」

「Against this backdrop, in Japan the Group promoted awareness and sales of “ROUND1 LIVE” using television commercials and other media. It also renovated 4 stores, Musashimurayama, Narashino, Tsu-Takachaya and Matsuyama, and reopened them as locations with Spo-cha.」

「The company newly held events including “Nationwide LIVE Challenge Match,” “Nationwide LIVE Fan Event” and “LIVE de Cashback Quest” using “ROUND1 LIVE.” It also introduced “JOYSOUND MAX GO” in karaoke and the latest music game machines, “maimaiでらっくす” and “WACCA,” in amusement. As a result, bowling increased 1.6% year on year, amusement increased 6.9%, karaoke increased 2.4% and Spo-cha increased 1.9%.」

「Installation of the latest equipment in bowling floors and karaoke rooms was completed, and the company began offering “ROUND1 LIVE.” New services using “ROUND1 LIVE” include “LIVE de Free Matching,” which allows users at separate Round One locations to connect freely; “LIVE de Designated Matching,” which connects users with specified participants; “Nationwide LIVE Challenge Match,” which lets users challenge popular professional bowlers simultaneously from across Japan; and “LIVE de Duet,” the industry’s first simultaneous singing system, which enables users at different locations to sing duets together. The company also began rolling out “JOYSOUND MAX GO” at karaoke locations. As a result, bowling increased 4.2% year on year, amusement increased 11.1%, karaoke increased 6.4% and Spo-cha increased 7.3%.」

「In addition to continuing the “Free Campaign for Elementary and Junior High School Students” and the “¥1,000 Cashback Event,” the company began installing the latest equipment in bowling areas and karaoke rooms and started providing trial “ROUND1 LIVE” content at participating stores. In amusement, it actively introduced popular machines for the fiscal year. At Spo-cha, it introduced Segway Drift and expanded popular content. As a result, bowling declined 2.6% year on year, amusement increased 2.9%, karaoke declined 0.8% and Spo-cha increased 1.3%.」

「The company believes that communicating the appeal of its services to customers and turning them into repeat visitors is essential to building an earnings structure capable of withstanding changes in the times.」

「The company will implement the following measures to address these issues.」

「The company sought to attract visitors through events involving popular artists, including the six-member female high-school vocal group “Little Gree Monster,” distribution of original merchandise, and a “1 free elementary school student for every 1 adult” campaign. As a result, performance at existing domestic stores was generally at the same level as the previous year.」

「The company actively sought to create new reasons to visit, including challenge events offering original merchandise from the six-member high-school group “Little Gree Monster,” but sales at existing domestic stores remained soft.」

「Although sales at existing domestic stores have generally been trending downward, improving and enhancing the earnings structure of the domestic business is an important issue for the Group. The company believes that the recent decline in domestic sales is attributable to the declining youth population resulting from Japan’s declining birthrate and aging population, as well as the diversification and changing nature of leisure in an increasingly information-oriented society, and will implement the measures below.」