Okada Manila reports Q1 losses
The Okada Manila, Philippines, integrated resort, owned by Japanese billionaire and former Wynn Resorts executive Kazuo Okada, announced a Q1 operating loss of JPY1.72 billion ($16.0 million). It comes with 24% decline in adjusted segment EBITDA with JPY2.17 billion ($20 million) for 2020.
The resort’s parent company, Universal Entertainment Corp, stated VIP rolling chip turnover at Okada Manila fell by 4% to PHP125.24 billion ($2.48 billion), with tables dropping by 25% to PHP3.50 billion ($69.2 million). GGR for Q1 fell by 9% to PHP8.64 billion (US$171.0 million).
Despite the losses from the resort, the Universal group’s net sales rose by 80% year-on-year to JPY40.77 billion ($378.3 million). This can be attributed to the pachinko and pachislot business, which earned the company JPY24.73 billion ($229.5 million). Operating profits rose to JPY9.51 billion ($88.2 million), compared to the loss of JPY227 million ($2.1 million) in 2019.
The company stated the COVID-19 virus had minimal impact on the business in Q1, but the Universal group is expecting greater drops in the coming months since Okada Manila remains closed and pachinko halls have been suspended in May. The company is preparing for the Philippines to re-open casinos, however, while the lockdown restrictions might ease starting today, but there are no plans from the government when casinos will be allowed to resume work.
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