Okada Manila reports $55.5 million operating loss in 2018

Universal Entertainment Corp’s flagship integrated resort business, Okada Manila, reported a narrowed operating loss of JPY6.2 billion (US$55.5 million) in 2018, helped by higher net sales, and “extremely high” occupancy rate during the year.

According to a filing from Universal Entertainment on Friday, its integrated resort business posted net sales of JPY48.9 billion in the twelve months, boosted by the expansion of facilities, such as hotel rooms and restaurants, as well as by the grand opening of the VIP casino areas, the addition of junkets and implementation of a mass market casino marketing program.

“Philippine gaming market in 2018 continued to grow at an annual rate in excess of 13 percent and Okada Manila’s share in the market increased due to the opening of integrated resort components and differentiation in terms of the scale of facilities and the quality of services.

The integrated resort also reported an “extremely high” hotel room occupancy rate, at 98.3 percent throughout the year.

Looking ahead, Universal Entertainment says it will continue to expand attractions and amenities at Okada Manila “at the highest priority.”

Additional hotel rooms are expected to open in 2019, which will help support “continued growth in the casino business” as well as better positioning of the resort to host large group events and foreign tour groups.

The company is also expected to grow VIP casino revenues, driven by the addition of new junkets and more demand from existing junkets, while mass market table and gaming machine revenue is also expected to grow as the property ramps up and new casino marketing initiatives come to fruition.

The group is preparing to take Tiger Resort, Leisure and Entertainment Inc, the core company behind the IR business, the public at some point in the future.