Okada Manila operator Universal Entertainment has announced that it is revising down its business results forecast for this year, amongst challenges in the Philippine integrated resort market and a delayed release of new titles.
According to a company update, the overall IR business in the Philippines ‘is experiencing a downturn in the VIP segment’. The group also highlighted that there has been ‘intensified competition in the mass market, and a decline in tourist arrivals’.
This has led to ‘rapid market changes and a more challenging business environment than anticipated’.
Overall, the group noted that for IRs in the country it was a ‘more challenging business environment than anticipated’.
Total gross gaming revenue for the group during the third quarter totaled PHP6.97 billion ($120 million), down from PHP8.23 billion ($141.72 million) in the same quarter of last year.
VIP rolling chip during the period halved year-on-year, while mass was slightly up and gaming machine revenue was down.
Looking to the group’s Amusement Equipments Business, the group highlighted that it had launched new titles ‘largely according to plan during the first quarter to the third quarter’.
But it is encountering difficulties in the fourth quarter, as the launch schedule for certain titles ‘was altered due to factors such as the low passing rate in the type approval test’.
Given the above, the group notes that ‘progress in sales revenue and all types of profits has fallen significantly below assumptions’ that were announced in August.
The newly revised figure is for net income to amount to a loss of JPY14.8 billion ($96.08 million), from a gain of JPY800 million ($5.19 million).
Operating profit has been revised down by some 99.7 percent, to JPY50 million ($324,600), while net sales have been revised down by 17.3 percent to JPY124 billion ($805 million).
