Japanese gaming giant Universal Entertainment Corp has reported a 17.5% decline in net sales to JPY77.14 billion (US$733.9 million) through the first nine months of 2020, including a 58.6% fall to JPY20.56 billion (US$195.6 million) at its Philippines integrated resort Okada Manila, due to the impact of COVID-19.
The company did not break down its results for the three months to 30 September 2020, but based on its previously published half-year results Universal’s third quarter sales slowed substantially to just JPY11.49 billion (US$109.3 million) compared with JPY65.65 billion (US$622.1 million) over the first six months of the year combined.
Okada Manila had previously reported a 48.8% decline in net sales between 1 January and 30 June to JPY16.10 billion (US$152.6 million), meaning 3Q20 sales at the Philippines IR were around JPY4.46 billion (US$42.4 million).
Okada Manila’s struggles have seen Universal’s Adjusted EBITDA decline very slightly to JPY20.81 billion (US$197.8 million) for the first nine months of 2020, despite strong growth in its pachinko and pachislot business.
Segment EBITDA for its “Amusement Equipment” grew 102.7% to JPY23.15 billion (US$220.0 million) on the back of strong sales of new game titles, but couldn’t quite cover losses at Okada Manila which fell from an Adjusted EBITDA profit of JPY9.06 billion (US$86.1 million) in the first nine months of 2019 to an Adjusted EBITDA loss of JPY2.76 billion (US$26.2 million).
In announcing its results, Universal confirmed that Okada Manila, which suspended operations on 15 March as per a PAGCOR directive, has resumed gaming operations at up to 30% capacity since August. It has also resumed hotel operations at full capacity and some restaurant operations at 50% capacity based on various government permissions.
“Nevertheless, the impact of COVID-19 has not ended,” the company said. “Okada Manila will continue to maintain high levels of hygiene management to prevent infection.”
RelatedPosts
