Universal Entertainment Corp, the Japanese conglomerate and parent company of the Okada Manila casino resort in Manila, reported that a decline in VIP guests has negatively impacted the property’s gaming business for the three months ending June 30.
The company noted that Okada Manila’s second-quarter performance was down compared to the previous year due to a continuing decline in VIP guests. This drop was attributed to a slowdown in the junket business, which negatively affected the overall market conditions for the casino industry in the Philippines, according to an announcement by Universal Entertainment.
Despite the decline, Universal Entertainment highlighted that while the performance of the mass market and gaming machine sectors was lower than a year ago, a period marked by a sales rebound after Covid-19, sales in these segments have steadily increased compared to the pre-pandemic peak sales of 2019.
Additionally, the company pointed out that guest numbers in the hotel and food and beverage sectors have remained consistently high.
Okada Manila’s second-quarter gross gaming revenue (GGR) declined by 21.8 percent year-on-year to PHP8.84 billion, according to a July filing by its promoter, Tiger Resort, Leisure and Entertainment Inc., which directly operates the property.
The property’s quarterly GGR has been declining year-on-year since the end of the third quarter of last year, according to company reports.
Adjusted segmental earnings before interest, taxation, depreciation, and amortization (EBITDA) for Okada Manila dropped by 30.0 percent year-on-year to PHP2.15 billion in the second quarter, with an 8.0 percent sequential decline.
Universal Entertainment also stated that Okada Manila is actively recruiting and training staff to strengthen its marketing capabilities in the gaming business. One of the goals is to attract more guests from other regions of the Philippines beyond Luzon Island, where Manila is located, as well as tourists from Japan, South Korea, and Southeast Asian countries.
Recently, Universal Entertainment replaced an overseas private bond issue, amounting to US$760 million, with bank loans and a private offering of U.S. dollar-denominated bonds. The Japanese company reported a net income of JPY525 million (US$3.6 million) for the six months ending June 30, with net sales falling 20.7 percent year-on-year to JPY62.91 billion.
Okada Manila also offers online gaming options to its members aside from its main casino offerings from its integrated resort.