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Japan’s Universal Entertainment Corporation posted a net loss of JPY9.87 billion (US$66.8 million) for the first half of 2025, led mainly by vulnerabilities at its Philippine integrated resort, Okada Manila. The group’s overall net sales slipped by 1.2 percent to JPY62.2 billion (US$421 million) over the period as underperformance in gaming as well as non-gaming segments of the resort took its toll on results.
Okada Manila, Universal’s Philippines flagship property, posted a 16.9 percent decline in net sales year on year to JPY34.6 billion (US$234 million), which resulted in a net operating loss of JPY1.32 billion (US$8.9 million), from a profit of JPY3.28 billion (US$22.2 million) during the same period of 2024. Adjusted segment EBITDA also declined sharply by 37.7 percent to JPY7.30 billion (US$49.4 million).
The drop at Okada Manila was caused by several factors, including the decline of customer traffic to Entertainment City, where it is situated. Coupled with this, low revenues from the VIP gaming segment could not be made up by increases in the mass market segment. The resort’s hotel and food and beverage segments also suffered, a reflection of issues in general throughout its divisions.
This difficult operating environment has co-existed with broader trends across the Philippine gaming industry during 2025, including the ban on offshore gaming operators, or Philippine Offshore Gaming Operators (POGOs). This regulatory change had a detrimental and indirect influence on the land-based VIP gaming market, causing declining numbers in visitation and spending.
Even as Okada Manila slowed, Universal’s Amusement Equipment business recorded strong gains. Net sales for the segment climbed 30.8 percent year on year to JPY27.2 billion (US$184 million), while operating profit increased 37.6 percent to JPY5.18 billion (US$35.1 million). The good performance of pachinko and pachislot machines underpinned growth, with 55,589 units sold in the half-year period, including 36,966 in the second quarter alone.
The improving market environment for pachislot machines is associated with the increasing diffusion of intelligent pachislot technology and high usage rates by pachinko parlors, as expected by operators. For the market segment of pachinko machines, development was observed for popular models with the introduction of the Lucky Trigger feature, while demand was relatively subdued.
In response to the challenges at Okada Manila, Universal has been targeting its marketing efforts and recruitment of high-quality people to drive new customers beyond Luzon. It aims to attract more domestic visitors throughout the Philippines and tourists from Japan, South Korea, and Southeast Asia.
Additionally, Universal completed its upgrades of the Coral Lounge in the second quarter, re-opening the space to encourage guests to stay longer within the casino environment.
The Philippine operations of Universal Entertainment are handled by Tiger Resort, Leisure and Entertainment Inc., which recently made a change in leadership, with present Universal CFO Nobuki Sato to take over from outgoing President and COO Byron Yip. This reorganization is in place to assist the strategic realignment of the company amidst the changing market circumstances.
Company-wide, Universal recorded a group operating profit of JPY847 million (approximately US$5.7 million) in the first half, down by 74 percent from the previous year, which indicates the company-wide challenges.
Universal Entertainment’s financial reports reflect how a company can face struggles in its core casino business while riding growth in its amusement equipment segment. Universal’s continuing strategy is to strengthen marketing infrastructure and operational adjustments to regain momentum in a competitive and challenging environment.
Source: Inside Asian Gaming (IAG)
