Universal Entertainment Corporation’s integrated resort business saw adjusted segment EBITDA fall 62.5 percent year-on-year to JPY2.74 billion ($17.4 million) in the first half of 2026, a decline the company attributed to weak VIP play, intensified competition and macroeconomic pressures at Okada Manila.
Net sales from the integrated resort segment fell 13 percent to JPY30.13 billion ($191 million). Its operating loss widened slightly to JPY1.37 billion ($8.7 million), from JPY1.32 billion ($8.4 million) in the prior-year period.
In its results presentation, Universal Entertainment said its integrated resort business ‘aims to turn a profit’ in the second half through online gaming, MICE promotions and stronger efforts to attract Japanese tourists.
The company also cited domestic political conditions and economic pressures linked to conflicts in the Middle East as factors affecting the first-half performance.
The consolidated first-half figures, released on Friday, follow preliminary second-quarter operating data issued in July by Okada Manila operator Tiger Resort, Leisure and Entertainment Inc. (TRLEI).
The earlier disclosure covered the property’s performance from April to June, while the latest results cover Universal Entertainment’s consolidated accounts for the six months to June 30th.
At the property level, Okada Manila’s first-half gaming revenue declined 15.9 percent to PHP12.52 billion ($203 million). VIP win fell 40 percent to PHP2.44 billion ($39.6 million), while mass-table win dropped 11.1 percent and gaming-machine win decreased 3.3 percent.
The decline came despite property visitation increasing 2.4 percent to 2.88 million. Non-gaming revenue remained virtually unchanged at PHP1.87 billion ($30.4 million).
Universal Entertainment said it was developing the premium-mass segment to reduce its dependence on VIP customers. It plans to strengthen direct marketing in Japan, South Korea, Taiwan, Singapore, Thailand and Malaysia.
Management said the company would pursue a ‘dual strategy’ of expanding online gaming while rebuilding revenue from land-based operations. The approach includes Okada Play, launched in partnership with PhilWeb in May, and Okada Online Casino.
The company is also reviewing its cost structure and prioritizing the allocation of management resources. It said some expenses increased in the second quarter due to strategic investments intended to support future growth.
Group-wide results boosted by amusement equipment business
At group level, Universal Entertainment’s first-half net sales rose 23.1 percent to JPY76.57 billion ($485.5 million), supported by stronger sales from its Japanese amusement equipment business. Group adjusted EBITDA increased 39 percent to JPY15.40 billion ($97.6 million).
Operating profit rose to JPY10.22 billion ($64.8 million), from JPY847 million ($5.4 million) a year earlier. Net income attributable to owners of the parent reached JPY62 million ($393,000), reversing a JPY9.87 billion ($62.6 million) loss.
The amusement equipment segment recorded a 69.1 percent increase in net sales to JPY45.93 billion ($291.2 million). Its adjusted EBITDA rose 148.3 percent to JPY15.16 billion ($96.1 million), offsetting the weaker contribution from the integrated resort business.
Universal Entertainment maintained its full-year forecast for net sales of JPY140 billion ($888 million), operating profit of JPY16 billion ($101.4 million) and net income of JPY2 billion ($12.7 million).
