Japan’s Universal books US$87 million profit in 2022 as Okada Manila, pachinko segments roar back to life

February 16, 2023 Japan Earnings & Filings

Japanese gaming giant Universal Entertainment Corp returned to profit in the year to 31 December 2022, boosted by the resumption of normal operating conditions at its Philippines integrated resort Okada Manila, a shift to new machines in its pachinko and pachislot supply business and substantial gains on exchange rates.

According to details published Tuesday, Universal recorded consolidated net profit attributable to owners of the parent of JPY11.5 billion (US$86.5 million), reversing a JPY19.1 billion (US$144 million) loss in 2021, as net sales soared by 55.9% to JPY141.0 billion (US$1.06 billion).

This included a 103.7% increase in net sales at Okada Manila to JPY71.8 billion (US$540 million), where operating profit of JPY3.78 billion (US$28.4 million) reversed a loss of JPY1.87 billion (US$14.1 million) in 2021. Adjusted Segment EBITDA grew 263% to JPY19.4 billion (US$146 million).

Universal noted that the mass market segment was a major reason for sales growth.

In the Amusement Equipment Business, Universal said demand for pachinko and pachislot machines had been slower than anticipated in 2021 due to the pandemic, however the recovery of the average utilization rate of machines in 2022 had made a big contribution to an upturn in the market for these machines.

“This recovery was the result of the complete shift to machines conforming to the new regulations and the start of the full-scale introduction of pachislot machines that comply with the new 6.5 standard, which has new game playing characteristics, and of smart pachislot machines,” the company stated.

The segment therefore booked a 26.0% increase in net sales to JPY68.3 billion (US$514 million) and 48.9% increase in operating profit to JPY19.8 billion (US$149 million).

Group-wide profit and income were further boosted by an exchange gain of more than JPY10 billion (US$75.2 million) because of the weaker yen and stronger US dollar, Universal added.