TOKYO, May 12 (Pulse News Wire) – GENDA Inc. (9166.T) held a briefing for institutional investors yesterday, focusing on its North American operations.
Executive Vice President and Chief Officer of US Operations, Iwata Atsushi, was the keynote speaker. The company highlighted recent sales declines primarily due to operational inefficiencies in System Tougou, rather than broader economic factors. Despite this, mini-lok sites are performing well, surpassing last year's figures. Management views early recovery of performance in North America as a top priority. To address these issues, GENDA developed and introduced a specialized mobile app called “Kiddleton Force” for unmanned stores in North America. This application streamlines cash counting and bank deposit processes, improving staff store visits. Additionally, AI-driven features optimize routes and automate meter readings via smartphone cameras, enhancing data collection and standardization.
In terms of strategic initiatives, GENDA plans to focus on “SWAP” exchanges within mini-lok locations and “Add-on” expansions in game centers. SWAP involves replacing existing gaming machines with larger prize offerings, while Add-on increases capacity without additional capital expenditure. Expansion efforts target high-footfall areas such as cineplexes and restaurant chains, leveraging acquisitions to secure prime locations. Future plans include increasing the proportion of popular IP prizes to 60-70%, utilizing detailed regional sales data collected through apps to tailor rewards to local preferences. On organizational management, GENDA has bolstered governance with increased personnel from Japan and implemented cost-saving measures such as rent negotiations and efficiency improvements in administrative departments. Compliance with licensing regulations and prize limits remains a key focus, serving as a barrier to entry for competitors. Strategies to maintain profit margins amid inflation and tariff-induced cost hikes include adjusting prize settings and procurement efforts.
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