Japan’s Universal Entertainment Corp reported net sales of JPY34.4 billion (US$220 million) in 1Q24, down 3% year-on-year due largely to the slowdown of the junket business at its Philippines integrated resort.
According to details filed Tuesday, net sales at Okada Manila fell 15.5% year-on-year to JPY20.4 billion (US$220 million), with operating profit down 57.2% to JPY1.18 billion (US$7.5 million) and Adjusted Segment EBITDA down 24.0% to JPY6.03 billion (US$38.6 million).
Universal explained that “the slowdown of the junket business is affecting the overall environment for gaming. There was a sharp decline in VIP rolling chip volume and the winning rate at table games for VIPs decreased from 3.4% one year ago to 2.8% [of rolling turnover]. The result was a downturn in gaming earnings.”
The company noted that average hotel room occupancy and room rates were largely in line year-on-year with a “large number of guests”, adding that there have been no disruptions to operations this year following the resolution of the IT system problem that hit the property in the fourth quarter of 2023.
While the integrated resort business slowed, the Amusement Equipment Business performed strongly with 28,014 units sold — 3,111 more than a year earlier. This increase, Universal explained, was partly attributable to the consistently strong performance of new smart Pachislot machines, which are meeting the expectations of pachinko hall operators.
Net sales in the segment grew 24.4% year-on-year to JPY13.9 billion (US$88.9 million) with operating profit up 26.7% to JPY3.93 billion (US$25.1 million).
Universal’s net profit attributable to owners of the parent grew 17.1% year-on-year to JPY3.45 billion (US$22.1 million).
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