Kyowa Corporation
6570・Standard Market・Services
Business
Kyowa Corporation is an independent amusement company founded in Nagano Prefecture in 1982. Its core business is amusement facility operations, running 73 stores nationwide (as of the end of March 2026) under the "Apina" brand, with prize games, video games, and medal games as its main content offerings. The company operates in a diverse range of locations, including roadside sites, mixed-use commercial facilities, and areas near train stations, targeting a broad customer base under the motto of being "bright, safe, and for three generations." In addition, the company operates an Amusement Equipment Sales business and Other Businesses, which encompass the Advertising Agency Business, squishy toys (Bloom Co., Ltd.), and a Trading Card Specialty Store, among others. As an independent company not affiliated with any manufacturer, its strength lies in its ability to freely select and introduce popular models from various manufacturers.
Business Model
Amusement Facility Operations accounts for approximately 92% of net sales, with game-play charges from visiting customers serving as the primary revenue source. The company aims to raise spending per customer and visit frequency through aggressive increases in prize-game machine units and an attractive prize lineup. In the Amusement Equipment Sales business, the company leverages the purchasing scale of its own stores to secure negotiating power with manufacturers while also selling to external operators. In Other Businesses, the company operates Squishy Toy & Sundry Goods Sales, a Trading Card Specialty Store (Trading Card Pit), and an Advertising Agency Business to diversify revenue.
Company Strengths
As an independent operator not affiliated with any manufacturer group, the company can freely select and introduce new products and popular machines from various manufacturers. By combining procurement for its own stores with procurement for external sales, it can negotiate with manufacturers leveraging scale advantages, and its ability to secure popular machines has become a point of differentiation from competitors.
The number of stores increased net 17 stores over four years, from 56 stores at the end of March 2022 to 73 stores at the end of March 2026. In FY2026 (ending March 2026) alone, the company newly opened 9 stores (an all-time high), including its first store in Shimane Prefecture, expanding coverage into new areas. New stores have consistently performed above expectations, absorbing opening costs and contributing to improved profitability.
The company has built up a track record of business revitalization and expansion through M&A, including the acquisition of 4 stores from Bandai Namco Amusement (2019), the acquisition of 3 stores from Square One (2019), and making Doraku Co., Ltd. a wholly owned subsidiary (February 2026), achieving scale expansion by combining organic and inorganic growth.
ENVALITH's Perspective
Performance Trend
Revenue for FY2026 (ending March 2026) reached ¥20,729 million (up 24.1% year on year), with growth accelerating from the previous period's 14.6% increase. Operating profit was ¥1,757 million (up 35.7%), ordinary profit ¥1,741 million (up 35.2%), and profit attributable to owners of parent ¥1,122 million (up 22.4%), setting new record highs at every profit stage. As external factors, continued popularity of prize games and a gradual economic recovery boosted the number of store visitors. Meanwhile, increased procurement costs due to price inflation and yen depreciation (cost of sales of ¥9,995 million, up 27.5% year on year) were absorbed by revenue growth. The company's forecast for FY2027 (ending March 2027) calls for revenue of ¥26,870 million (up 29.6%) and operating profit of ¥2,000 million (up 13.8%), projecting continued growth in both revenue and profit.
Growth Strategy
Advancing nationwide expansion of the amusement business through a three-pronged approach of accelerated new store openings, M&A, and development of new business formats
Based on the medium-term plan, 9 new stores were opened in FY2026 (ending March 2026) (net increase of 8 stores), expanding to 73 stores by fiscal year-end. Entry into new areas was also achieved, including the first store opening in Shimane Prefecture. The policy for FY2027 (ending March 2027) is to continue aggressive store openings while thoroughly conducting information gathering and on-site surveys.
Continuing to aggressively increase the number of prize game machines and enrich the variety-rich prize lineup. Also actively developing and selling original prizes using Squishy toys, aiming to differentiate from competitors and increase customer spend per visit. Promotional activities through the official app and SNS are also being strengthened.
3 new stores were opened in FY2026 (ending March 2026), expanding to 4 stores by fiscal year-end. Viewing the growth of the new and used trading card market as an opportunity, the company is accelerating the rollout of specialty stores. It also aims to pursue synergies (customer traffic and cross-selling) with existing Amusement Facilities.
Doraku Co., Ltd. was newly consolidated in FY2026 (ending March 2026), expanding the scope of consolidation. At subsidiary Bloom Co., Ltd., the company is promoting the planning and production of proprietary original Squishy products, focusing on sales at directly-operated stores (such as the Fukuoka Airport International Terminal) and e-commerce sites. It is also working to capture demand from inbound foreign visitors.
Last updated: July 19, 2026