Universal Entertainment, the operator of Okada Manila, reported a net loss of JPY15.57 billion ($101.1 million) for the fiscal year ending December 31st, 2024.
This marks a significant decline from the previous fiscal year, when the company posted positive net income of JPY 28.44 billion ($184.7 million).
In addition to the loss, the company saw sharp declines in both net sales and operating profits compared to 2023. Net sales dropped by 29.4 percent yearly, from JPY 179 billion ($1.16 billion) in 2023 to JPY126.33 billion ($820.3 million) in 2024. Operating profits plummeted 90.1 percent, to just JPY3.02 billion ($19.6 million) in 2024.
Universal Entertainment attributes the loss to several factors, particularly the slowdown in the junket business in the Philippines, which adversely affected the overall market conditions for its casino operations.
In its integrated resort business segment, net sales fell by 15.4 percent year-on-year to JPY 81.98 billion ($532 million), and operating profit dropped by 80 percent to JPY2.87 billion ($19 million). Adjusted segment EBITDA also decreased by 34.8 percent, reaching JPY19.56 billion ($127 million) in 2024.
The company notes that Okada Manila’s fiscal year 2024 performance lagged behind the previous year. The number of VIP guests continued to decline due to the slowdown in the junket business, which hurts the overall market conditions for the Philippine casino industry.
While sales in the mass market and gaming machines have steadily increased since pre-pandemic levels, performance in 2024 was lower compared to the post-pandemic surge seen in 2023. However, the hotel and food and beverage sectors maintained strong performance, with high guest numbers and increasing revenue.
Shareholder benefits withheld
In a separate announcement made on Thursday, Universal Entertainment confirmed that it will not implement its Shareholder Benefit Program for the 2024 fiscal year, citing its current financial position.
The program, intended for shareholders registered in the company’s shareholder register as of December 31st, 2024, and holding at least one unit (100 shares) of common stock, will not proceed.
The company added that it will continue to review the possibility of implementing the Shareholder Benefit Program for the fiscal year ending December 31st, 2025, and in future years.
