In Q3 of 2024, Okada Manila reported a sharp decline in gross gaming revenue (GGR), signaling a difficult year for the Philippine casino resort. According to a Tuesday filing from its parent company, Universal Entertainment Corp., GGR dropped by 33.4 percent year-on-year. It totaled just under PHP8.23 billion ($140 million), down from PHP12.35 billion during the same period in 2023.
This result continued the downward trend in quarterly GGR. It also fell by 6.8 percent compared to PHP8.84 billion in the second quarter of 2024.
Tiger Resort, Leisure and Entertainment Inc. (TRLEI), which operates Okada Manila, has experienced a steady GGR decline since late 2023. After reporting a 29.7 percent year-on-year increase in Q3 2023, the company saw continuous drops. GGR fell by 11.2 percent in Q4 2023, 24.1 percent in Q1 2024, and 21.8 percent in Q2 2024.
For the first nine months of 2024, Okada Manila recorded a total GGR of PHP25.84 billion ($446.82 million). This figure represents a 26.6 percent decrease from the same period in 2023.
VIP revenue suffered the biggest hit during the third quarter. It dropped by 44.3 percent year-on-year to just under PHP2.47 billion. Additionally, it fell 15.1 percent compared to the previous quarter.
Meanwhile, revenue from mass-market tables also posted sharp losses. It declined by 40.2 percent year-on-year. Moreover, it slid by 17.3 percent quarter-on-quarter, settling at PHP2.46 billion.
Gaming machines, while still down 13.4 percent year-on-year, delivered comparatively stronger results. These machines posted an 11.5 percent increase from the second quarter, generating nearly PHP3.31 billion.
On the non-gaming side, Okada Manila saw a modest gain. Non-gaming revenue grew by 2.3 percent year-on-year in Q3 2024, reaching approximately PHP933 million. However, this figure marked a 7.1 percent decline from the previous quarter.
The third-quarter EBITDA also took a significant hit. Okada Manila reported a 69.2 percent year-on-year drop, ending the quarter at just under PHP1.10 billion ($18.93 million). Compared to the second quarter, EBITDA also fell by nearly 49 percent.
Despite these financial headwinds, the resort achieved higher hotel occupancy. The occupancy rate climbed to 87 percent, improving from 78.9 percent in Q2 and 81.4 percent during Q3 2023.
In terms of foot traffic, Okada Manila welcomed about 1.42 million visitors during the third quarter. This was over 80,000 fewer guests than in the same period last year. It also marked a slight drop from the 1.45 million visitors recorded in Q2 2024.
Overall, the significant declines in VIP and mass-market revenue, combined with reduced foot traffic, created a difficult quarter for Okada Manila. These factors heavily impacted both its GGR and EBITDA performance.
