Universal reports improved Q1 results thanks to amusement equipment business

The company attributed the stronger performance mainly to its amusement equipment division.

Japan.- Universal Entertainment Corp returned to operating profitability in the first quarter of fiscal year 2026. It’s reported that growth in its amusement equipment business offset challenges at its integrated resort operations in the Philippines, with demand for smart Pachislot machines remaining strong and unit sales up year-on-year.

The company reported consolidated net sales of ¥28.43bn (US$196.2m) for the three months ended March 31, up 4.2 per cent from ¥27.28bn (US$188.2m) in the same period a year earlier. Operating profit reached ¥3.50bn (US$24.1m), compared with an operating loss of ¥2.51bn (US$17.3m) a year earlier, while the operating margin stood at 12.3 per cent. The net loss improved to ¥1.43bn (US$9.8m) from ¥7.56bn (US$52.1m).

During the quarter, adjusted EBITDA rose to ¥6.98bn (US$48.1m), compared with ¥3.74bn (US$25.8m) in the prior-year period.

Okada Manila recorded net sales of ¥15.44bn (US$106.5m), down 16 per cent year-on-year. Segment operating profit fell 92.8 per cent to ¥23m (US$158,000), while adjusted EBITDA declined 55.7 per cent to ¥2.04bn (US$14.1m).

VIP rolling chip volume rose 8.6 per cent year-on-year to PHP57.64bn (US$1.03bn), but the rolling chip win declined 19 per cent to PHP1.44bn (US$25.7m), while the VIP win rate dropped to 2.5 per cent from 3.3 per cent in Q1 2025.

In the mass-market segment, the live table drop fell 29.3 per cent year-on-year, while mass table win declined 24.1 per cent. The gaming machine handle fell 4.1 per cent and gaming machine win 8.9 per cent.

The company said cost management measures helped support performance at the property, with reductions in operating expenses and revisions to customer retention initiatives.

Looking ahead, Universal expects competition in the Philippine market to intensify further and warned that the impact of ongoing tensions in the Middle East could extend beyond the second quarter with increased fuel costs affecting travel demand to Okada Manila. In response, the group plans to place greater emphasis on digital gaming initiatives in the Philippines through its Okada Play online platform.

For the full year, the company maintained its forecast of ¥140bn (US$965.5m) in net sales, ¥16bn (US$110.3m) in operating profit, and adjusted EBITDA of ¥29bn (US$200.0m).