UEC Pivots Okada Manila Toward Mass Market And Online Gaming After Weak 2Q

Japan’s Universal Entertainment Corp said its Philippines integrated resort, Okada Manila, will focus on the mass market and its new online gaming platform to improve performance after another challenging quarter. In its 2Q26 results released on Friday, UEC pointed to ongoing market challenges in the Philippines, including the Middle East conflict and a decline in VIP gaming revenues, as key factors weighing on the property.

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Okada Manila Posts Lower Sales And EBITDA

Net sales at Okada Manila fell 13.0% year-on-year to JPY30.1 billion, or US$191 million, for the 3 months to June 30. Adjusted EBITDA dropped 62.5% to JPY2.74 billion, or US$17.4 million, resulting in an operating loss of JPY1.37 billion, or US$8.7 million.

UEC said visitation remained steady due to various promotional activities, but noted that the group has been rapidly advancing initiatives since the start of the fiscal year. Those include developing the premium mass segment to reduce dependence on VIP customers and strengthening marketing activities targeting Japan and other key Asian countries.

The company also underscored its initiatives in the online gaming arena in light of the debut of OKADA PLAY with the help of platform operator PhilWeb Corporation. In its statement, UEC claimed that it continues to work toward creating a diversified revenue stream by adopting an omnichannel approach that will include both online and brick-and-mortar venues, despite any changes in the operating environment.

This particular initiative, according to the company, seeks to offset the risks associated with fluctuations in terms of visitation by customers.

Cost And Revenue Measures At Okada

UEC outlined intensified efforts to improve the overall profitability of the facility, including expanding non-gaming revenue through the hosting of large-scale events. It said it was significantly affected by changes in the market environment but is steadily advancing initiatives to improve its revenue structure by promoting cost optimization and prioritizing the allocation of management resources.

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The company noted that while some expenses increased in the second quarter, these included strategic investments aimed at future growth and strengthening its business foundation.

Group Results Lifted By Pachinko And Pachislot

For the Group overall, UEC recorded a 23.1% growth in net sales year-over-year to JPY76.6 billion (US$485 million). The income attributable to owners of the parent company posted a profit of JPY62 million (US$392,845), as opposed to the losses recorded a year ago of JPY9.9 billion (US$62.7 million).

This turnaround performance was solely attributed to the pachinko and pachislot business segment, where there was a 69.1% growth in net sales to JPY45.9 billion (US$291 million). There was a 148% increase in adjusted EBITDA for this segment to JPY15.2 billion (US$96.3 million), with segment operating profit up 174% to JPY14.2 billion, or US$90.0 million.

UEC said sales of new smart pachislot machines have remained strong and have gained popularity in terms of utilization, acting as a key driver of the overall market. As a result, the pachislot market continues to enjoy favorable conditions. In the pachinko market, the company said the sales market continues to contract due to overall sluggish utilization.

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Source: Inside Asian Gaming