Japan’s Universal Entertainment Corp (UEC) says its Philippines integrated resort Okada Manila will focus its energies on the mass market and its new online gaming platform in a bid to boost performance following another challenging quarter in the three months to 30 June 2026.
Publishing its 2Q26 results on Friday, UEC pointed to ongoing market challenges in the Philippines as a key concern, with the Middle East conflict and decline in VIP gaming revenues continuing to impact revenues. This saw net sales at Okada Manila fall 13.0% year-on-year to JPY30.1 billion (US$191 million) and Adjusted EBITDA fall 62.5% to JPY2.74 billion (US$17.4 million), resulting in an operating loss of JPY1.37 billion (US$8.7 million).
Although the company said visitation was steady due to various promotional activities, it added, “The Group has been rapidly advancing various initiatives since the beginning of the fiscal year, including the development of the premium mass segment to reduce dependence on VIP customers and the strengthening of marketing activities targeting Japan and other key Asian countries.”
UEC also detailed its efforts in the online gaming space following the launch of “OKADA PLAY” in partnership with platform provider PhilWeb Corp.
“We [are working] to diversify our revenue base by advancing an omnichannel strategy that integrates online and land-based operations, despite facing changes in the competitive landscape of the Philippine gaming market and the impact of macroeconomic conditions,” it stated.
“This initiative aims to mitigate the impact of fluctuations in visitor numbers while strengthening our efforts to attract new customer segments.”
UEC further outlined intensified efforts to “improve the overall profitability of the facility, including expanding non-gaming revenue through the hosting of large-scale events. Although we were significantly affected by changes in the market environment, we are steadily advancing initiatives to improve our revenue structure by promoting cost optimization and prioritizing the allocation of management resources.
“While some expenses increased in the second quarter, these include strategic investments aimed at future growth and strengthening our business foundation.”
Group-wide, UEC reported a 23.1% year-on-year increase in net sales to JPY76.6 billion (US$485 million), with income attributable to owners of the parent of JPY62 million (US$392,845) – reversing a loss of JPY9.9 billion (US$62.7 million) a year earlier. The improvement was entirely off the back of its pachinko and pachislot segment, which saw net sales grow 69.1% to JPY45.9 billion (US$291 million). Adjusted EBITDA was also up 148% to JPY15.2 billion (US$96.3 million) with segment operating profit of JPY14.2 billion (US$90.0 million), up 174%.
On the segment’s performance, UEC said, “Sales of new smart pachislot machines have remained strong, and they have also gained popularity in terms of utilization as a key driver of the overall market. As a result, the pachislot market continues to enjoy favorable conditions. In the pachinko market, the sales market continues to contract due to overall sluggish utilization.
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