Mars Group Holdings Corporation

Business Details

Provides total solutions centered on prepaid card systems (including personal/smart gaming machine dedicated units) and the next-generation management support system "EVOALL Series" for pachinko and pachislot halls. Supports operational efficiency and profit maximization for hall operations. In FY2026 (ending March 2026), this core segment accounted for approximately 72.8% of consolidated net sales. In the prior period, the segment achieved record-high results for two consecutive periods due to special demand from the redesign of Japanese banknotes, but in the current period, sales and profit declined as this special demand subsided.

Recent Overview

Net sales declined significantly by 29.9% year on year as special demand from the banknote redesign subsided

For FY2026 (ending March 2026), net sales in the Amusement-related Business were ¥23,503 million (down 29.9% year on year), and segment profit was ¥8,494 million (down 28.9% year on year). In the prior period, special demand associated with the redesign of Japanese banknotes drove record-high results for two consecutive periods, but in the current period, the subsequent normalization of equipment investment demand had a direct impact. The number of pachinko halls continued to decline, standing at 6,464 as of the end of December 2025 (down 242 stores year on year), reflecting the ongoing contraction of the industry. While the penetration rate of smart pachislot machines expanded to over 50%, the penetration rate of smart pachinko machines remained at approximately 20%. The company continued to propose total systems centered on the EVOALL Series, maintaining a cumulative installed store count of 1,376 stores (market share of 23.9%).

Key Products

Growth Drivers

• Continued capture of demand for smart gaming machine dedicated units as the penetration rate of smart pachislot machines expands to over 50%
• Future expansion of penetration and equipment replacement demand accompanying the start of new-standard gaming machine introductions for smart pachinko machines
• Acquisition of new and renovation-based projects through total system proposals centered on the EVOALL Series
• Expanded sales of next-generation management support systems utilizing AI and cloud technology, such as Evoall Cloud
• Opportunities for concentrated sales to major customers and large-scale project acquisition amid ongoing M&A activity among major chains

Risks

• Market contraction due to the continuing decline in the number of pachinko halls (6,464 stores as of the end of December 2025, down 242 stores year on year)
• Decline in industry-wide capital investment appetite due to the long-term decline in the gaming population
• Restrained capital investment due to deteriorating hall management amid rising labor and utility costs
• Risk that the penetration rate of smart pachinko machines, remaining at around 20%, delays full-scale adoption
• Risk of structural demand weakness following the complete normalization of special demand from the banknote redesign
• Risk of market share decline due to entry by competitors