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Japan-based Universal Entertainment Corp (UEC) suffered a major blow in 2025, reporting a net loss of JPY231.4 billion ($1.51 billion) compared to a loss of JPY15.6 billion ($102 million) the previous year. Most of the losses have been due to the impairment charges and increased expenses of the group’s main casino resort in the Philippines, Okada Manila. The company revealed its full-year results on Friday, which painted a picture of a group being squeezed by difficult market conditions in one of its major markets.
Amusement Equipments Business Shows Strength
In other news, UEC’s pachislot and pachinko segment, Amusement Equipments Business segment, saw significant growth despite the poor results reported by the group. In the same year, the segment has reported a 30.4 percent increase in net sales to JPY56.7 billion ($371 million) and a 45.8 percent jump in operating profit to JPY10.7 billion ($70 million) due to the timely launch of the group’s new models, which has helped the group sell 115,000 units compared to 92,150 the previous year.
This shows the performance of the segment in the tough market of Japan by focusing on the launch of the latest models. For UEC, this segment shows a part of the group that can still earn profits, which provides a good balance to the negative influences being felt at its casino resort segment.
Okada Manila Faces Headwinds in VIP and Revenue
Okada Manila, one of four integrated casino resorts in Manila’s Entertainment City precinct, struggled through the year. UEC pointed to a shrinking VIP market in the Philippines as the main drag, worsened by temporary issues like bad weather cutting visitor numbers and political instability adding uncertainty. Those factors pushed gaming revenue below the prior year’s level, leading to a 20.2 percent drop in net sales to JPY65.4 billion ($428 million).
It recorded an operating loss of JPY7.11 billion ($46.6 million), and adjusted segment EBITDA fell 47.4 percent to JPY10.3 billion ($67.4 million). Apart from the low revenues, UEC also took a large valuation write-down at Okada Manila, as well as higher selling, general, and administrative costs, including higher depreciation. This non-cash expense and cost headwinds, apart from the low revenues, made the situation more challenging for the company.
Resilience in Player Engagement
Even in the challenging times, Okada Manila managed to retain some stability with regards to their customer base. The REWARD CIRCLE loyalty program has grown from 79,000 members to 102,000 over 2025, with monthly active members increasing by 0.8 percent. Those numbers suggest the resort held onto core players and added some new ones, even as overall spend softened. UEC sees this as a foundation to build from, particularly in the mass market where engagement metrics held firmer than VIP revenue.
Plans to Rebound Through Mass Focus and Upgrades
Looking ahead, UEC plans to double down on mass-market growth at Okada Manila. The firm intends to strengthen its loyalty schemes and partner with regional travel agents, while also expanding its international marketing offices to draw in more visitors. Away from the gaming floor, the firm’s construction of the Pearl Wing room refurbishment is ongoing, and two floors are to be completed by 2026.
UEC reaffirmed the firm’s commitment to introducing fresh gaming products to remain vibrant and bring patrons back to the gaming floor. This approach relies on the accumulation of improvements to the firm’s mass market, loyalty schemes, rooms, and floor innovation to boost revenue and return to profitability after a tough 2025 financial year. Since the firm does not expect the VIP market to recover quickly, the focus is shifting to the sustainability of the mass market and other gaming attractions in a competitive Entertainment City market.
Source: Inside Asian Gaming (IAG)
