A slump in the Philippines' junket casino business significantly impacted Okada Manila's gaming revenue.
Okada Manila, the integrated resort operated by Universal Entertainment Group, has reported a decline in its annual performance for fiscal year 2024, primarily due to a slowdown in the junket business within the Philippines' casino market. This downturn has significantly impacted the resort's gaming revenue.
Universal Entertainment Group's overall integrated resort business, which includes Okada Manila, saw net sales of ¥81,981 million (approximately ₱30.5 billion or $550 million), a 15.4% decrease year-on-year. Operating profit plummeted by 80.0% to ¥2,871 million (approximately ₱1 billion or $19 million), while adjusted segment EBITDA fell by 34.8% to ¥19,560 million (approximately ₱7.2 billion or $130 million).
The core issue affecting Okada Manila's performance is the continued decline in VIP guest numbers.
The press release specifically cites the "slowdown of the junket business" as the primary culprit, negatively impacting overall market conditions for casinos in the Philippines. Junkets, which bring in high-rolling gamblers, have been facing challenges, leading to fewer VIP players at Okada Manila.
While the mass market and gaming machine categories at Okada Manila have shown steady growth since pre-pandemic levels in 2019, even these segments experienced a downturn in fiscal year 2024 compared to the previous year's post-pandemic rebound.
Despite this, the hotel and food and beverage businesses at Okada Manila are performing well, with consistently high guest numbers and increasing revenue. This suggests that while the gaming segment is struggling, other areas of the integrated resort are showing positive signs. However, these gains were not enough to offset the significant losses in the gaming sector.
Read related article: Okada Manila Reports 33.4% Revenue Drop to $142M in 3Q 2024
.png)
Comments