Japan’s Universal Entertainment Corp has revised upwards its results forecast for the fiscal year ending 31 December 2023, citing the strong performance of its Philippines integrated resort Okada Manila as the primary reason for the improved outlook.
In a Friday filing, Universal revealed it was now expecting to generate net sales of JPY186.5 billion in 2023, up 3.5% from its previous forecast of JPY180 billion. Likewise, operating profit is now tipped to rise by 19.1% over earlier forecasts to JPY28.0 billion and net income attributable to owners of the parent by 50% to JPY30.0 billion.
The company noted that it had not previously opted not to revise its forecasts despite ordinary profit of JPY28.billion exceeing original forecasts. This, it said, took into consideration factors such as recent fluctuations in foreign exchange rates.
However, Universal explained that it had now opted to revise estimates because Okada Manila “is progressing well above the forecast with strong growth in sales and profits resulting from a great increase in the number of visitors due to summer vacation and the expansion of domestic gaming demand in the Philippines.”
It added that the company’s sales plan in its pachinko business also remains solid with major new titles expected to be launched in the market in the fourth quarter of the fiscal year.
Okada Manila operator Tiger Resort, Leisure and Entertainment Inc (TRLEI) last week announced that the property generated gross gaming revenues of Php12.4 billion (US$218 million) for the three months to 30 September 2023, up 29.7% year-on-year and 9.3% higher than the June quarter.
Adjusted Property EBITDA for the period grew by 45.6% year-on-year and 15.8% quarter-on-quarter to Php3.56 billion (US$62.7 million), with Okada Manila welcoming 1,498,487 visitors in 3Q23 compared compared to 1,109,791 a year earlier.