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With a net loss of $102.8 million for the most recent fiscal year, Tokyo-based Universal Entertainment Corporation (UEC), a casino and pachinko operator, has revealed a severe financial slump. Operating profit fell 90.1% to $19.8 million, while net sales fell 29.4% to $834 million.
The decline in VIP gaming at Okada Manila, UEC’s premier integrated resort in the Philippines, was a significant contributor to the company’s losses. While overall gaming revenue dropped 21.8% to $599.4 million, the resort’s net sales down 15.4% to $541.4 million.
In its February 13 financial report, UEC cited the challenges facing high-stakes gaming in the region: “The slowdown of the junket business negatively affected the overall market conditions for the casino business in the Philippines.”
Despite these struggles, the resort saw increased foot traffic, and non-gaming sectors, such as hotel, food, and beverage operations, continued to show strong performance.
Sales of UEC’s gaming machine sector in Japan, meanwhile, fell even more precipitously, falling 46.3%. Major new pachinko and pachislot titles were supposed to be released by the corporation in the second half of 2024, but several launches were postponed until 2025 due to testing delays. Due to this setback, just 49,000 units were sold in the second half of the year, bringing total sales down to 92,000.
UEC is still hopeful about the pachinko market in spite of the downturn. The company anticipates a comeback driven by “richer game elements in smart pachinko machines” and the introduction of popular games that may boost sales.
Despite UEC’s struggles, the Philippines gaming industry hit record highs in 2024, driven largely by online gaming growth. The sector generated $6 billion in gross gaming revenue, exceeding the government’s initial projection of $5.75 billion and surpassing 2023’s $4.9 billion total.
Okada Manila also achieved a Forbes Travel Guide 5-star rating for the fifth year in a row, earning praise as “the sparkling jewel in Manila’s crown.” Key attractions include The Fountain, the world’s largest multicolored dancing water display, and Cove Manila, the region’s biggest enclosed entertainment venue.
Looking ahead, UEC plans to expand its marketing efforts to attract more local visitors and international tourists from Japan, South Korea, and Southeast Asia. The company is also focusing on growing its new online gaming platform targeted at Filipino players, using loyalty programs to boost engagement.