Gamecard-Joyco Holdings,Inc.

Business Details

Game Card Holdings, Inc. operates the prepaid card system-related business for pachinko halls in a single segment through its consolidated subsidiary, Japan Game Card Co., Ltd. The main product categories handled are four items: Equipment (Card Units, Ticket Vending/Deposit Machines, Settlement Machines, etc.), IC Cards / IC Coins, System Usage Fees, and Construction & Maintenance. The third-party issuance-type prepaid card system is the core business, and the company also generates recurring stock-type revenue by continuously collecting Information Management Fees / System Usage Fees from member stores. Major customers are agencies such as Cosmo E.C. Co., Ltd. and Ace Denken Co., Ltd.

Recent Overview

Both net sales and operating profit declined sharply due to sluggish uptake of Smart Pachinko

In FY2026 (ending March 2026), against a backdrop of pachinko halls becoming more cautious about capital expenditure due to rising utility and labor costs, the spread of Smart Pachislot remained resilient, but the uptake of Smart Pachinko fell significantly short of expectations. As a result, net sales came to ¥25,385 million (down 33.1% year on year) and operating profit came to ¥4,534 million (down 49.7% year on year), representing a substantial decline in both revenue and profit. Selling, general and administrative expenses increased by ¥456 million year on year to ¥6,295 million, further squeezing profitability. For FY2027 (ending March 2027), the company forecasts net sales of ¥21,000 million (down 17.3% year on year) and operating profit of ¥3,000 million (down 33.8% year on year), a further decline in revenue and profit, premised on the continuation of halls' cautious stance toward capital expenditure. The annual dividend was maintained at ¥100 per share, and the dividend payout ratio rose to 43.0%.

Key Products

Growth Drivers

• Steady expansion of demand for peripheral equipment and systems accompanying the spread of smart gaming machines (Smart Pachislot)
• Continuation of stock-type revenue from Information Management Fees and System Usage Fees related to IC Cards / IC Coins
• Increase in non-operating income such as interest and dividends received, driven by the expansion of the investment securities balance (¥12,928 million)
• Diversification of revenue through challenges in new business areas (M&A, capital and business alliances, etc.)
• Stabilization of raw material procurement and strengthening of cost competitiveness through improved procurement processes and multiple sourcing

Risks

• Contraction trend in the pachinko hall market (changes in the regulatory environment for the gaming industry and market shrinkage)
• Decline in system and equipment demand due to the continued underperformance of Smart Pachinko uptake beyond expectations
• Prolonged deterioration in pachinko hall profitability and continued restraint on capital expenditure due to soaring labor and utility costs
• Decline in profit margin due to an increasing trend in selling, general and administrative expenses (¥6,295 million in FY2026 (ending March 2026))
• Rising procurement costs due to soaring raw material prices and procurement difficulties
• Risk of revenue concentration in major agencies (Cosmo E.C. Co., Ltd., Ace Denken Co., Ltd., etc.)
• Spillover effects of soaring raw material and energy prices due to US tariff policy and geopolitical risk