Category: Japan, Philippines, Latest News, Global Updates
Universal Entertainment Corp, the parent company of the Okada Manila casino resort in the Philippines, has revised its full-year 2024 forecast, now anticipating a loss of JPY18.30 billion (approximately $116.9 million). This marks a significant shift from its earlier projection of JPY19.60 billion in net income, announced in February.
The firm also announced it will not issue a year-end dividend for 2024, a departure from its initial plan to distribute JPY0.30 per share.
Revenue and Market Trends
Universal Entertainment forecasts net sales for 2024 to reach JPY126 billion, down sharply from the previously anticipated JPY200 billion. This revision comes in the wake of the company’s nine-month results through September 30, which reported:
- A net loss of JPY19.46 billion.
- Net sales of JPY92.37 billion, reflecting a 25.6% year-on-year decline.
One of the primary factors contributing to the downgraded forecast is the continued decline in VIP gaming activity at Okada Manila. The company stated that the downturn in VIP play is expected to persist across the broader Philippine casino market, creating an uncertain operational environment.
Okada Manila Performance
Okada Manila’s gross gaming revenue (GGR) has faced consistent year-on-year declines since Q3 2023. For the first nine months of 2024, GGR dropped by 26.6%, with a sharper 33.4% decline reported in Q3 alone.
To counter these challenges, Universal Entertainment highlighted efforts to enhance its marketing capabilities, including recruiting and training personnel to target a wider range of customers. The company aims to attract more players from regions outside Luzon Island, as well as international tourists from Japan, South Korea, and Southeast Asia.
Pachinko Business Impact
Universal Entertainment’s amusement equipment segment, particularly its pachinko unit, has also experienced setbacks. The delays in launching several major titles have further strained the company’s performance.
Dividend Update
The company has scrapped plans for a year-end dividend, citing its revised earnings forecast. However, it had previously issued an interim dividend of JPY0.30 per share following its Q2 results earlier this year.
Luckshots Perspective
At Luckshots, we continuously monitor industry trends to keep you informed. Universal Entertainment’s challenges highlight the shifting dynamics of the casino industry, where evolving customer preferences and market uncertainties demand innovative strategies to maintain growth. As Okada Manila focuses on expanding its market reach and refining its operations, it remains a key player to watch in the global gaming sector.