Universal Entertainment sees decline in net sales in Q1
Net sales were down 21 per cent year-on-year.
The Philippines.- Universal Entertainment Corp has recorded net sales of JPY27.2bn (US$184.9m) for the first quarter of the year. That’s a decline of 21 per cent when compared to last year.
Okada Manila posted net sales of JPY18.3bn (US$124.4m), down 9.8 per cent year on year, and an operating profit of JPY331m (US$2.25m), down 81.3 per cent. The venue reported adjusted segment EBITDA of JPY4.6bn (US$31.27m), down 23.6 per cent amid a decline in VIP rolling chip volume.
Gross gaming revenue (GGR) from the gaming machine category declined due to the decrease in the number of visitors. According to the Philippine Department of Tourism, the number of inbound travellers from South Korea and China, the main overseas source countries for the casino, decreased by 13.9 per cent and 33.7 per cent, respectively, in the first quarter. The hotel and F&B business also saw a decline in revenue.
The amusement equipment business sold 18,623 units, a decrease of 9,391. Net sales decreased by 36.9 per cent to JPY8.7bn (US$59.14m). The company posted an operating loss of JPY1.1bn (US$7.48m), compared to an operating profit of JPY3.9bn (US$26.51m) in the first quarter of 2024. The company said pachislot sales were strong due to the diffusion of smart pachislot machines. However, there was an operating loss caused by the decrease in sales volume.
In March, Universal Entertainment announced a new management structure with a board and 12 executive officers. The change is intended to “reduce the excessive concentration of authority and to facilitate speedier decision making.”
Shareholders appointed four directors and one board member for audit and supervisory matters. Three directors were reappointed: Tomohiro Okada, who is also the president of Universal Entertainment; Masayoshi Miyanaga; and Hiroshi Miyauchi. The new director, Yoshiyuki Shouji, will oversee overseas business operations as well as legal and intellectual property matters. Shareholders also approved Kuninobu Okuda as a full-time audit and supervisory board member.
