Japan’s Universal Entertainment Corp says it expects to suffer an estimated 18.8% decline in net income on a 7.9% fall in sales for the fiscal year ending 31 December 2020, driven by the closure of its Philippines integrate resort, Okada Manila, due to COVID-19.
Providing an update to its business results forecast for the year overnight, Universal said it has revised down its sales expectations from JPY 190 billion to JPY 175 billion (US$1.63 billion), and its net income from JPY 32 billion to JPY 26 billion (US$242 million). The impact has been slightly negated by the company’s amusement equipment business in Japan which it says is currently at a level exceeding its original sales plan.
Notably, Universal said it expects the Philippines government to issue a further two-week extension to casino closures, until mid-May, taking the total closure period of Okada Manila to two months. The government ordered the closure of all non-essential services, including casinos, from 15 March to 12 April – later extended to 30 April.
The company is estimating 2020 net sales at Okada Manila to total JPY 40 billion (US$372.5 million) with an ordinary income of JPY 3 billion (US$27.9 million).
Universal’s revised forecast followed release of Okada Manila’s financial results for the month of March, which saw gross gaming revenue decline 54.0% year-on-year to Php1.52 billion (US$30 million) and Adjusted segment EBITDA from Php509 million to a loss of Php248 million.
The mass gaming floor was hardest hit, plummeting 66.1% to Php242 million (US$4.8 million) with slot machine revenue down 53.5% to Php424 million (US$8.4 million).
VIP GGR fell 49.3% to Php849 million (US$16.8 million).
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