Universal Entertainment posts 2017 fiscal year loss

Universal Entertainment Corporation, operator of Okada Manila, recorded a net loss of JPY 13.4 billion for the nine months ended December 31, 2017, due mainly to an operating loss from its casino and resorts business.

Net sales was recorded at JPY 68.5 billion, while operating loss was JPY 9.8 billion.

In its casino resort business, Universal posted sales of JPY 16 billion, but an operating loss of 9 billion due to fixed expenses in the period.

The company said it will continue to pursue revenue increases and profitability improvement through its Cove Manila business, the full-scale operation of VIP rooms, and the promotion of various entertainment facilities and completion of its hotel, which is at its final stages.

“…. the start of full-scale operations of a VIP casino is expected to make a big contribution to sales. Consequently, the outlook is for the Casino Resort Business to grow to become the second core business alongside the Pachislot and Pachinko Business in 2018, resulting in a substantial change in the composition of consolidated sales.”

Universal however said it expects its Pachislot and Pachinko businesses to see a challenging operating environment after tightening rules on machine operations.

The pachi side of the business saw net sales of 50.3 billion, and an operating profit of 9.3 billion for the nine months ended December 31, 2017.