Universal Entertainment Corp said results at Okada Manila remained under pressure during the first quarter of 2026 due to intensifying competition in the Philippine gaming market, weaker mass-market performance and lower VIP hold rates, although the integrated resort improved sequentially following adjustments to its loyalty program.
The Japanese gaming and entertainment group reported that its Integrated Resort business generated net sales of JPY15.44 billion ($106 million) in the three months ended March 31st, down 16.0 percent year-on-year. Operating profit fell 92.8 percent to JPY23 million ($158,000), while adjusted segment EBITDA declined 55.7 percent to JPY2.04 billion ($14 million).
Universal said the gaming market in Entertainment City, Manila, remains in a period of adjustment, citing structural changes in the VIP market, intensifying competition for both VIP and mass-market customers, and rising customer acquisition costs. The company also said geopolitical tensions in the Middle East and higher fuel costs continued to weigh on market demand.
‘Although results fell short of the same period of the previous year, they exceeded those of the previous quarter due to measures such as the overhaul of our loyalty program,’ the company said in presentation materials accompanying its quarterly earnings release.
VIP gaming volume at Tiger Resort, Leisure and Entertainment Inc, the entity operating Okada Manila, increased during the quarter, but lower hold rates reduced overall VIP revenue. Rolling chip volume rose 8.6 percent year-on-year to PHP57.64 billion ($1.03 billion), while rolling chip win fell 19.0 percent to PHP1.44 billion ($25.7 million). The VIP win rate declined to 2.5 percent from 3.3 percent a year earlier.
Mass-market operations weakened more significantly. Live mass table games volume fell 29.3 percent year-on-year and mass table win declined 24.1 percent. Gaming machine handle dropped 4.1 percent, while gaming machine win decreased 8.9 percent. Overall gaming revenue declined 17.1 percent to PHP6.47 billion ($116 million).
Despite lower revenue, Universal said Okada Manila maintained operating profitability through cost-cutting measures, including reductions in selling, general and administrative expenses, optimization of fixed costs and lower depreciation expenses following an asset revaluation conducted during the previous fiscal year.
The company added that it would continue expanding its online gaming strategy in the Philippines through the ‘Okada Play‘ platform launched in partnership with PhilWeb Corp.
