Universal Entertainment Corp, the Japanese powerhouse and owner of Okada Manila casino resort in Manila, has reported a downturn in its gaming sector for the quarter ending June 30. The dip is attributed primarily to a decrease in VIP guest numbers. The resort also witnessed a decline in Q2 revenue.
“[The] slowdown of the junket business negatively affected the overall market conditions for the casino business in the Philippines,” Universal Entertainment stated on Thursday. This deceleration in the junket operations led to fewer VIP patrons, directly impacting the casino’s earnings compared to the same period last year.
Mass Market Shows Resilience Amid VIP Decline
While the VIP segment suffered, there’s a silver lining. The mass market and gaming machine sectors, though experiencing a drop from last year’s post-Covid resurgence, have showcased steady growth relative to their pre-pandemic performance in 2019. Furthermore, the hotel, along with food and beverage divisions, continues to enjoy consistently high guest numbers.
Data from a July filing reveals that Okada Manila’s casino gross gaming revenue (GGR) plummeted by 21.8% year-on-year, settling at PHP8.84 billion (US$154.1 million). This marks the continuation of a downward trend in quarterly GGR since the close of Q3 last year. Additionally, the adjusted segmental earnings before interest, taxation, depreciation, and amortisation (EBITDA) dropped by 30.0% from the previous year, reaching PHP2.15 billion—a sequential decline of 8.0%.
In response to these challenges, Universal Entertainment highlighted efforts to bolster their gaming business. “[Okada Manila is] recruiting and training people in order to strengthen marketing capabilities in the gaming business,” the company announced. The strategy aims to draw more visitors from regions in the Philippines beyond Luzon Island, where Manila is situated. There’s also a focus on attracting tourists from Japan, South Korea, and Southeast Asian nations.
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