Okada Manila closure hurting parent Universal Entertainment Corporation

Japanese pachinko, slot and arcade games manufacturer Universal Entertainment Corporation has reportedly detailed that it expects to record comparable drops in its net income and aggregate sales for the twelve months to the end of the year.

According to a report from Inside Asian Gaming, the Tokyo-listed firm used an official filing to explain that it anticipates recording an about 18.8% year-on-year decline in annual net income to as low as $241.43 million come December 31 alongside an around 7.9% fall in total sales to approximately $1.62 billion.

Coronavirus consequence:

Formerly known as Aruze Corporation, Universal Entertainment Corporation is responsible via its Tiger Resort Leisure and Entertainment Incorporated vehicle for the giant Okada Manila integrated casino resort that opened in the Philippines’ Entertainment City district in December of 2016. The firm reportedly used the update to pronounce that its predicted slump is largely down to the recent temporary closure of this 993-room venue owing to the ongoing coronavirus pandemic although it has since been encouraged by better than expected domestic equipment sales.

Additional adjournment:

Inside Asian Gaming reported that the Japanese conglomerate now envisages the $2.2 billion Okada Manila development with its 284,283 sq ft casino realizing net income for 2020 in the region of $27.85 million off of total sales of about $371.41 million. It moreover purportedly stated that it believes the government of the Philippines will soon extend its six-week nationwide casino closure order by a further fortnight until the middle of next month.

Sagging sales:

The filing from Universal Entertainment Corporation reportedly followed the publication of Okada Manila’s financial results for March in which the facility showed a 54% comparable decline in gross gaming revenues to just over $29.79 million as well as an about 148% diminution in adjusted earnings before interest, tax, depreciation and amortization to a deficit of around $4.86 million. The update purportedly showed that the venue’s mass-market gaming floor had been the hardest hit with 31-day revenues having plunged by 66.1% year-on-year to roughly $4.74 million although its VIP business saw takings decrease by some 49.3% to approximately $16.64 million.