Universal Entertainment sees slight decrease in Q1 revenue
Japan's Universal Entertaiment Q1 results saw a 3% decrease due to performance of its integrated resort Okada Manila.
Universal Entertainment saw a decrease in its Q1 revenue, a 3% year-on-year decline in net sales for the first quarter of 2024, amounting to JPY34.4bn ($220m). The main cause affecting the decrease, according to the operator, was the financial performance of its integrated resorts.
Okada Manila saw a significant drop in financial performance, where its net sales fell 15.5% year-on-year to JPY20.4bn and operating profit plunged 57.2% to JPY1.18bn, causing its adjusted segment EBITDA to decrease by 24.0% to JPY6.03bn.
The declines were attributed to a decrease in VIP rolling chip volume and a reduced winning rate at VIP table games, which dropped from 3.4% to 2.8% compared to the last year, thus significantly impacting gaming earnings.
Despite this, the company still reported stable hotel operations, with average room occupancy and rates remaining largely unchanged year-on-year for its resorts.
Universal’s Amusement Equipment Business, however, saw an increase in revenue. The company sold 28,014 units, an increase of 3,111 units compared to the same period last year. This growth was driven by the strong performance of new smart Pachislot machines, which have been well-received by pachinko hall operators. As a result, net sales in this segment rose 24.4% year-on-year to JPY13.9bn, and operating profit increased by 26.7% to JPY3.93bn.
Universal Entertainment’s net profit attributable to owners of the parent grew by 17.1% year-on-year, reaching JPY3.45bn.
Last year, Universal Entertainment confirmed a similar outcome in its Q1 report.
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