Japan’s Universal Entertainment Corp has reported a 147% increase in net income attributable to owners of the parent to JPY28.4 billion (US$189.4 million) in 2023, buoyed by increased demand for pachinko and pachislot machines and an increase in visitation to its Philippines integrated resort, Okada Manila.
Publishing its consolidated financial results on Thursday, Universal also revealed a 26.9% increase in net sales to KRW179.0 billion (US$1.19 billion), with operating profit also up 152% to JPY30.5 billion (US$203.4 million).
The main reason provided for the strong results, the company explained, was its Amusement Equipment Business where sales and earnings were strong “because of firm demand for machines that comply with the 6.5 standard and smart Pachislot machines.”
As a result of releasing a number of popular new titles, the number of units sold in this segment increased from 150,048 in 2022 to 180,632 in 2023, pushing sales 35.1% higher to JPY81.0 billion (US$540.2 million) with segment profit of JPY24.1 billion (US$160.7 million).
At Okada Manila, an increase in visitation saw a “big increase” in revenue for all gaming segments, pushing net sales to JPY96.9 billion (US$646.3 million), although higher personnel expenses kept profit subdued at JPY14.3 billion (US$95.4 million). Universal noted that the company had suffered a negative impact in 2022 due to the illegal occupation of the resort mid-year, which resulted in a comparative gain in 2023. However, “In the fourth quarter, there were activities at Okada Manila to reinforce internal administrative systems that include a re-examination of data management in response to a company-wide IT system problem.”
Looking ahead, Universal said it is forecasting an 11.7% increase in net sales to JPY200 billion (US$1.33 billion) in 2024, although net income attributable to owners of the parent is expected to fall by around 31% to JPY19.6 billion (US$130.7 million).
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