Universal Entertainment Corp. reported a ¥15.6 billion ($104 million) net loss for 2023, reversing from a profit a year earlier, as its Manila casino struggled with a decline in high-roller visitors and gaming machine sales slumped.
The Japanese pachinko and casino operator saw revenue drop 29.4% to ¥126.3 billion, while operating profit plunged 90.1% to ¥3 billion, the company said Tuesday. The sharp decline reflects ongoing challenges at its Okada Manila integrated resort, where VIP customer numbers remained depressed amid a broader slowdown in Philippines’ junket business.
The company’s gaming machine division saw sales fall 46.3% as regulatory testing delays pushed back new product launches. Total machine sales dropped to 92,150 units, with just 49,106 units sold in the second half of 2023.
Despite increased foot traffic at Okada Manila, the property’s performance lagged behind 2022 levels when it benefited from pent-up demand following pandemic restrictions. While mass-market gaming and slot machine revenue has grown compared to pre-Covid levels in 2019, it wasn’t enough to offset the VIP segment decline.
Universal Entertainment expects a recovery in 2024, forecasting a return to profit with projected net income of ¥800 million on revenue of ¥150 billion. The company plans to focus on expanding its smart pachinko machine lineup and stabilizing its Manila operations amid continued market uncertainty.
