Okada Manila Targets Mass Market and Online Gaming

Universal Entertainment Corp (UEC) said its Philippines integrated resort, Okada Manila, is prioritizing the mass market and online gaming as it seeks to improve performance following another difficult quarter.

In its second-quarter 2026 results, UEC identified challenging market conditions in the Philippines, including the impact of the Middle East conflict and weaker VIP gaming revenue, as factors affecting the resort.

Okada Manila Revenue and EBITDA Decline

Okada Manila generated net sales of JPY30.1 billion, approximately US$191 million, during the three months ended June 30, representing a 13.0% decline from the same period last year.

Adjusted EBITDA dropped 62.5% year-on-year to JPY2.74 billion, or around US$17.4 million. The property also recorded an operating loss of JPY1.37 billion, equivalent to approximately US$8.7 million.

UEC said visitor numbers remained stable, supported by various promotional initiatives. However, the company has been accelerating measures since the beginning of the fiscal year to strengthen the resort's performance.

One priority is expanding the premium mass segment to reduce reliance on VIP gaming. UEC is also increasing marketing efforts aimed at Japan and other important Asian markets.

OKADA PLAY Supports Online Expansion

UEC also highlighted its online gaming strategy following the launch of OKADA PLAY with platform operator PhilWeb Corporation.

The company said it is pursuing a more diversified revenue model through an omnichannel strategy combining online gaming with its physical casino operations.

According to UEC, the approach is intended to reduce exposure to fluctuations in customer visitation and provide a broader revenue base despite changes in market conditions.

Cost Control and Non-Gaming Revenue

The company is also working to improve Okada Manila's profitability through several revenue and cost initiatives.

UEC plans to expand non-gaming income by hosting large-scale events while continuing to optimize costs and focus management resources on key priorities.

The company acknowledged that some expenses increased during the quarter, but said these included investments aimed at supporting future growth and strengthening the business.

Group Performance Supported by Pachinko

Despite the weaker performance at Okada Manila, UEC's overall results improved during the quarter.

Group net sales increased 23.1% year-on-year to JPY76.6 billion, or approximately US$485 million. Profit attributable to owners of the parent company reached JPY62 million, around US$392,845, compared with a JPY9.9 billion, or US$62.7 million, loss a year earlier.

The improvement was attributed entirely to UEC's pachinko and pachislot operations.

Sales from the segment rose 69.1% to JPY45.9 billion, approximately US$291 million. Adjusted EBITDA increased 148% to JPY15.2 billion or US$96.3 million, while operating profit climbed 174% to JPY14.2 billion, around US$90 million.

UEC said demand for newly launched smart pachislot machines remained strong, with their utilization contributing to favorable conditions in the pachislot market.

The company added that the pachinko market continues to contract as overall utilization remains sluggish.