GENDA, established by Mai Shin and Naohiro Kataoka, has witnessed unprecedented growth since its inception in 2018, largely driven by strategic acquisitions and effective adaptation to market changes. The company, primarily known for its expansive game center operations, is set to exceed 100 billion yen in revenue this fiscal year, marking a pivotal moment for the organization. Operating within the entertainment sector, GENDA has successfully navigated challenges such as the COVID-19 pandemic, demonstrating resilience and forward-thinking strategies.
Reflecting on GENDA's evolution, President Mai Shin emphasizes the company's vision. "I believe the entertainment industry is something people are inherently drawn to," she stated. This sentiment echoes the company's commitment to enhancing the overall enjoyment of life through entertainment, which is the core aspiration of GENDA. The organization has made significant strides by establishing approximately 800 game centers and leasing locations across Japan, the United States, and other international markets.
Particularly noteworthy is GENDA's strategy of aggressive mergers and acquisitions, totaling around 40 since its inception. This approach has solidified the company's market position and broadened its operational footprint. For example, their acquisition of Sega Entertainment’s arcade business during the pandemic provided GENDA with roughly 190 additional game centers, significantly boosting its portfolio.
Despite the obstacles faced, Shin remained optimistic. "We started facing major challenges when COVID-19 hit," she recalled. The pandemic resulted in substantial declines for many businesses, including GENDA’s rental services, which saw revenues plummet to zero. This led the leadership team to make tough decisions, including negotiating lower rents and securing financial support to avert bankruptcy.
With markets recovering, GENDA is gearing up for substantial growth. By the end of the third quarter of the 2025 term, the company reported revenues doubling to 776 billion yen, with projections indicating total sales of 1.4 trillion yen for the upcoming year. Notably, the expectation for EBITDA rose from 18.5 billion yen to 20 billion yen without relying on acquisitions. This astounding growth reflects improved profitability across its diverse business segments.
Shin credits much of GENDA's success to leveraging the popularity of Japanese content, particularly iconic anime and characters, which have generated massive appeal globally. "The game center market is thriving and growing, fueled by recent developments, including family-friendly environments," said Shin. This shift is evident as family-oriented activities become increasingly popular, countering the aging stereotype of arcade centers as venues for only teenagers or young adults.
Looking forward, GENDA has outlined aggressive goals for expansion within the United States, where they plan to introduce the vibrant world of Japanese entertainment. "Our aim is to become the world's number one entertainment company," Shin declared, highlighting the broader aspirations of GENDA to export its unique brand of amusement culture. She envisions GENDA as not only meeting the demand for fun but also becoming the platform through which Japanese entertainment can reach global audiences.
To support this vision, GENDA is expected to adopt International Financial Reporting Standards (IFRS) starting from 2026, which promises to relieve the company from burdensome amortization of good will from acquisitions. This transition will redefine how their overall profitability is reported, aligning more closely with global standards used by major corporations.
The significance of the accounting shift cannot be understated. The current Japanese standards require amortization over 20 years, introducing potential liabilities to the company’s financial books. By switching to IFRS, GENDA aims to streamline its financial reporting and bolster investor confidence, particularly as they continue to seek additional funding for future acquisitions and growth initiatives.
Through each challenge faced, GENDA has not only survived but thrived, marking itself as one of Japan’s most dynamic entertainment companies. The leadership's ability to maintain focus on customer enjoyment and strategic growth has positioned them for continued success.
To conclude, GENDA stands on the cusp of greater achievements, firmly establishing its role as both a creator of immersive entertainment experiences and a leader among global amusement enterprises. Looking forward, Shin’s vision to bridge Japanese culture and entertainment with international audiences may well redefine the future of entertainment as we know it today.