Universal Entertainment Corp, the Japanese conglomerate behind Okada Manila, reported a sharp decline in VIP guest traffic during the Q2 of 2024. This downturn negatively impacted the casino resort’s gaming business for the three-month period ending June 30.
The company confirmed that Okada Manila’s Q2 revenue dropped compared to the same period last year. They attributed this decline to a continuing decrease in VIP guests. This trend, they noted, stems from a weakening junket segment, which has significantly affected broader market conditions across the Philippine casino industry.
Despite the setback in the VIP sector, Universal Entertainment emphasized a few positive developments. While mass market and gaming machine revenues fell short of last year’s post-Covid rebound, these segments still showed steady improvement when compared to 2019’s pre-pandemic peak.
Moreover, the company highlighted that guest traffic in the hotel, restaurant, and food and beverage sectors remained consistently high. This ongoing support from non-gaming segments offered some resilience to overall performance.
In a regulatory filing released in July, Tiger Resort, Leisure and Entertainment Inc.—which operates Okada Manila—reported that second-quarter gross gaming revenue (GGR) fell 21.8 percent year-on-year to PHP8.84 billion.
Company reports also showed that Okada Manila’s GGR has declined year-on-year for four consecutive quarters. The downward trend started at the end of the third quarter last year.
Additionally, adjusted segmental earnings before interest, taxation, depreciation, and amortization (EBITDA) dropped 30.0 percent year-on-year to PHP2.15 billion. The figure also reflects an 8.0 percent decline compared to the previous quarter.
To address these challenges, Okada Manila has started recruiting and training additional staff. The casino aims to boost its marketing efforts and attract a broader customer base. This includes targeting guests from outside Luzon, particularly from other Philippine regions, as well as international visitors from Japan, South Korea, and Southeast Asia.
In a financial strategy shift, Universal Entertainment replaced a US$760 million overseas bond issue. The company refinanced it using a mix of bank loans and a private U.S. dollar bond offering.
For the six months ending June 30, Universal Entertainment reported a net income of JPY525 million (US$3.6 million). However, net sales dropped 20.7 percent year-on-year to JPY62.91 billion.
Aside from its core land-based offerings, Okada Manila continues to offer online gaming options to its registered members. This digital channel remains an additional avenue for player engagement and revenue growth.
With strong competition in the integrated resort space and market pressures continuing, Okada Manila now looks to diversify, adapt, and expand beyond its VIP-reliant model.
