Universal Entertainment Corp has reported that Okada Manila’s GGR was down 49 per cent sequentially in the second quarter.<\/p>\n\n\n\n\n\n\n\n
The Philippines.- Okada Manila has reported\u00a0gross gaming revenue (GGR) or PHP2.61bn (US$52.1m)<\/strong>\u00a0for the second quarter. That’s a fall of 49 per cent <\/strong>from the previous quarter.<\/p>\n\n\n\n Universal Entertainment Corp<\/strong>, which operates Okada Manila, said the casino remained affected by Covid-19 countermeasures. <\/p>\n\n\n\n The company reported that\u00a0VIP table game GGR fell by 35.2 per cent\u00a0<\/strong>in the three months to June 30 while mass table game revenue declined by 38.9 per cent quarter on quarter to PHP526m. Gaming machines revenues dropped by 69.6 per cent<\/strong>\u00a0to PH578m.<\/p>\n\n\n\n Adjusted segment EBITDA<\/strong>\u00a0was negative PHP204m\u00a0<\/strong>compared to a positive figure of PHP692m in the opening quarter of 2021.<\/p>\n\n\n\n In the\u00a0first quarter of the year<\/a>, GGR came in at PHP5.10bn (US$1.05bn), down from PHP8.64bn in the first three months of 2020.\u00a0Adjusted segment EBIDTA<\/strong>\u00a0fell by 35 per cent to\u00a0PHP692m<\/strong>.<\/p>\n\n\n\n Metro Manila<\/a>\u00a0will remain under general community quarantine (GCQ)<\/strong>\u00a0until July 15. Casinos<\/a>\u00a0were allowed to resume operating\u00a0<\/strong>at a reduced capacity in May after being closed in March.<\/p>\n\n\n\n In May,\u00a0Fitch Ratings revised its outlook<\/a>\u00a0for the gaming company and lowered it from\u00a0B to CCC+<\/strong>, suggesting default is a real possibility for the group.<\/p>\n\n\n\n Fitch said that unless Universal Entertainment saw significant improvement in the second half of the year 2021,\u00a0it may have insufficient liquidity to meet the repayment\u00a0<\/strong>of its senior notes. Ongoing\u00a0travel restrictions and lockdowns\u00a0<\/strong>ould lead to further cash burn and deteriorating liquidity<\/p>\n\n\n\n Despite the issue of additional notes due in 2024<\/a> outside of Japan, Fitch said there is still uncertainty over the company\u2019s liquidity<\/a>.<\/p>\n\n\n\n It said: \u201cThis is because\u00a0the positive impact of the tap issuance is counterbalanced by ongoing uncertainty<\/strong>\u00a0over Universal Entertainment\u2019s liquidity and free cash flow generation.\u201d<\/p>\n\n\n\n Through the issue of additional notes, the operator aimed to\u00a0redeem the outstanding principal amount of US$118m of the company\u2019s existing notes due 2021<\/strong>, which were privately placed outside Japan in December 2018.<\/p>\n","protected":false},"excerpt":{"rendered":" Universal Entertainment Corp has reported that Okada Manila’s GGR was down 49 per cent sequentially in the second quarter.<\/p>\n","protected":false},"author":176,"featured_media":17254,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Universal Entertainment Corp reported a 49% sequential decline in Okada Manila's GGR for Q2, driven by COVID-19 countermeasures impacting all gaming verticals and resulting in negative adjusted segment EBITDA. Fitch Ratings subsequently downgraded Universal Entertainment Corp's default rating to CCC+, citing significant liquidity concerns and potential default risk regarding senior note repayments.","focusai_entities":"Universal Entertainment Corp, Okada Manila, Fitch Ratings","focusai_location":"Philippines, Metro Manila, Japan","focusai_target_profile":"ceo_executive (0.9), operator_casino (0.9), investor_analyst (1.0), supplier_vendor (0.8), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Liquidity Strategy","query":"Given the CCC+ rating and ongoing cash burn, what specific capital market strategies is Universal Entertainment Corp implementing to address its senior note obligations and improve its liquidity profile beyond the 2024 tap issuance?"},{"label":"Operational Recovery","query":"What are the projected GGR recovery timelines and operational efficiency improvements anticipated for Okada Manila, particularly concerning VIP and mass market segments, assuming a gradual easing of COVID-19 restrictions?"}],"footnotes":""},"categories":[163,16333],"tags":[23907,8986,23686],"class_list":["post-20253","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-news","category-south-east-asia-news","tag-land-based-casino","tag-okada-manila","tag-universal-entertainment"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/20253","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=20253"}],"version-history":[{"count":2,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/20253\/revisions"}],"predecessor-version":[{"id":20275,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/20253\/revisions\/20275"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/17254"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=20253"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=20253"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=20253"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Fitch Ratings maintains CCC+ default rating for Universal Entertainment Corp<\/strong><\/h2>\n\n\n\n