Japan’s Universal Entertainment Corp, the company formerly controlled by Kazuo Okada, has revised downwards its revenue forecast for FY18 due to slower than expected ramp at its Philippines IR, Okada Manila, and delays in sales of new pachinko and pachislot machines in its home country.
In a business update posted on Universal’s corporate website, Universal revealed it was now budgeting for net sales of JPY92.7 billion (US$822 million), down 37.8% on its previously forecast JPY149 billion, and operating income in the red to the tune of JPY19.7 billion (US$175 million) as opposed to positive operating income of JPY6.2 billion as previously anticipated.
Explaining the change, the company said it had originally performed an upwards revision of its forecasts after it and subsidiary Aruze USA Inc had obtained more than US$2.6 billion due to its settlement with Wynn Resorts in May.
Since then however, while Okada Manila has been steadily increasing revenue and profit generated over time, its results “still fell below target.”
“Due largely to these factors, the company has elected to perform a downwards revision for both sales and income for the full fiscal year.”
Universal also pointed to delays in pachinko and pachislot machine conformance stemming from new regulations, which have delayed sales until 2019.
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