Okada Manila Sees 33.4% Revenue Drop to US$142 million in 3Q 2024 Amid Mass Table Games Decline

Philippine integrated resort Okada Manila has reported a sharp decline in its gross gaming revenues for the third quarter of 2024. The resort’s revenues fell by 33.4% year-on-year and by 27.2% from the previous quarter, totaling Php8.23 billion (US$142 million) for the period ending September 30, 2024. This downturn reflects substantial challenges in both the VIP and mass table games segments, which have historically contributed significantly to the resort’s revenue.

According to a financial report released on October 15, 2024 which was cited by Inside Asian Gaming, total revenue for Okada Manila dropped by 30.9% compared to the same period last year, amounting to Php9.16 billion (around US$158 million). The decline was particularly pronounced in the VIP table games sector, where revenue plummeted by 44.3% year-on-year to Php2.47 billion (about US$42.7 million). The mass table games segment also saw a significant drop, decreasing by 40.2% to Php2.46 billion (approximately US$42.6 million). Meanwhile, revenue from slot machines fell by 13.4% to Php3.31 billion (around US$57.3 million).

The adjusted segment EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also reflected this downturn, coming in at Php1.10 billion (around US$19 million). This figure represents a staggering 69.2% decrease year-on-year and a 49.0% decline compared to the previous quarter.

Despite the revenue challenges, the operator of Okada Manila–Tiger Resort, Leisure and Entertainment Inc. (TRLEI)–did not specify the reasons behind these declines. Notably, hotel occupancy rates remained strong, reaching 87.0% in the third quarter, up from 81.4% a year earlier. Additionally, total visitation only saw a minor decrease of 5.4%, with 1,418,190 visitors recorded during the quarter.

For the first nine months of 2024, the situation remained bleak, with gross gaming revenue down 26.6% year-on-year to Php25.8 billion (around US$446 million). The adjusted segment EBITDA for this period also fell by 44.0% to Php5.57 billion (approximately US$96.4 million).

The decline in revenues raises questions about the integrated resort’s market positioning and competitive landscape. While the exact reasons for the revenue drop remain unclear, some analysts have pointed to external factors affecting the gaming industry in the Philippines. These could include changes in consumer behavior, increased competition from other gaming establishments, or broader economic conditions impacting discretionary spending.

It is worth noting that Okada Manila experienced significant operational issues in late 2023, when a major IT outage disrupted operations. The incident resulted in all slot machines being temporarily shut down and many systems across the resort being affected. At the time, the company referred to the outage as “technical issues” with their Information Technology Systems.

Read related article: Okada Manila experiences major outage; representatives say due to “technical issues”