While its IR in the Philippines has been closed since March 15, Universal’s gaming machines business saw a 141 per cent increase in sales.
Japan.- Universal Entertainment has posted net sales of 65,647 million yen (US$621.5 million) for the second quarter, an increase of 24.9 per cent year-on-year.
The firm reported operating profits of 12,666 million yen (US$119.9 million) up from an operating loss of 3,850 million yen (US$36.4 million) in the same period of 2019.
The growth was due to very strong sales of Pachislot machines, up from 47,052 in the first six months of 2019 to 110,591 in the first half of 2020.
The amusement equipment business posted net sales of 48,852 million yen (US$462,5 million), an increase of 141.8 per cent year-on-year, offsetting a decline in revenue from the company’s Philippines IR.
Although sales of pachinko machines plummeted in Q2 due to lockdown restrictions, sales of pachislot machines, hybrid pachinko and slot games, rocketed to 57,949 in Q2 – almost as many as were sold in all of 2019.
Universal began selling two new models during the quarter and saw sales of both new machiens exceed expected volumes.
The huge growth in the equipment business helped offset the impact of lockdown measures on the company’s Philippines IR, which saw sales fall 48.8 per cent year-on-year to 16,095 million yen.
Okada Manila has been closed since March 15 due to the pandemic and still has no expected date for reopening. Adjusted segment EBITDA was a loss of 1,323 million yen (US$12.5 million) for the quarter.
As a result of uncertainty generated by the pandemic, Universal Entertainment has temporarily withdrawn its full-year consolidated business forecast for the fiscal year, describing it as “to be determined”.
It warned that despite a strong quarter for its domestic equipment business, it expected that the stagnation of economic activity could have a negative effect in what remains of the year.
The company warned: “Compounding that is the persistent state of uncertainty regarding the future, as exemplified by growing concerns of a second wave of Covid-19 infections.”