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In the first half of 2025, Universal Entertainment Corp. faced a significant setback as its Philippines integrated resort, Okada Manila, delivered weaker-than-expected results. The company posted net sales of JPY 62.2 billion (US $421 million), reflecting a modest 1.2% decline year-on-year—but more tellingly, the resort itself saw sales drop 16.9% to JPY 34.6 billion, resulting in an operating loss of JPY 1.32 billion (US $8.9 million), in stark contrast to a JPY 3.28 billion (US $22.2 million) profit a year earlier. Adjusted EBITDA for the segment also tumbled by 37.7%.

Universal highlighted several underlying causes: a slump in both gaming and non-gaming performance, sluggish inbound traffic in Entertainment City where Okada Manila resides, and a downturn in VIP gaming revenue that the mass-market segment failed to offset. Even the hotel and F&B operations underperformed—a double blow for the resort.

Despite this drag from Okada Manila, Universal’s Amusement Equipment Business (pachinko and pachislot machines) bucked the trend. Net sales surged 30.8% year-on-year to JPY 27.2 billion (US $184 million), while operating profit rose 37.6% to JPY 5.18 billion (US $35.1 million). The company credited the growing adoption of “smart pachislot” machines and the impact of popular new models—such as those featuring the Lucky Trigger (LT) function—as key drivers.

Across the group, Universal’s operating profit for 1H 2025 fell to JPY 847 million (US $5.7 million), down 74%, and net losses amounted to JPY 9.87 billion (US $66.8 million), underscoring just how heavily Okada Manila weighed on overall earnings .

To counteract the downturn, Universal is investing in its marketing capabilities—specifically targeting regions beyond Luzon to broaden its appeal to local and regional audiences. The company also completed renovations of Okada Manila’s Coral Lounge in Q2, aiming to boost dwell time and spend in the casino. Organizational changes followed: Byron Yip, President and COO of Tiger Resort, Leisure and Entertainment Inc. (Okada Manila’s operator), is set to be replaced by Universal’s CFO, Nobuki Sato.