Universal Entertainment Outlook Cut as Okada Slows

S&P Global Ratings has revised its view on Universal Entertainment Corp, changing the outlook on the Japanese group’s long-term issuer credit rating from “stable” to “negative.” The agency cited ongoing weak performance across core segments, especially the Okada Manila casino resort in the Philippines.

Good to know

• S&P retained its ‘B’ long-term rating for Universal and its senior debt.
• Okada Manila’s GGR fell over 11% year-on-year in Q1 2025.
• Full-year EBITDA at Okada Manila dropped nearly 38% from 2023.

According to S&P, both the domestic pachinko segment and Philippine casino operations have delivered weaker-than-expected results. The agency warned that Universal’s financial condition could worsen within the next year if performance fails to improve.

Although Okada Manila has launched cost-cutting efforts and non-gaming promotions, S&P remains cautious. It expects EBITDA from the casino business to reach around JPY24 billion (approximately $165.9 million) over the next 12 months.

Universal’s overall consolidated EBITDA is projected to recover slightly—from JPY21.2 billion in 2024 to JPY29 billion in the current fiscal year. Still, that is just 70% of what the company recorded in a stronger 2023.

Okada Manila’s total gross gaming revenue for 2024 dropped by 21.8%, down to PHP34.82 billion ($623.8 million). Segmental EBITDA also declined to PHP7.64 billion, marking a 37.8% fall compared to 2023.

S&P said the risk of Universal breaching financial covenants remains low but warned that slow recovery may limit future capacity. The agency stated, “There is a certain possibility that [Universal’s] earnings may fall short of expectations and the outlook for recovery may be pushed back.”