Japan’s Universal Entertainment Corp (UEC) reported a JPY231.4 billion (US$1.51 billion) loss in 2025, widened from JPY15.6 billion (US$102 million) in the prior year primarily due to impairment losses and expenses at its Philippines integrated resort, Okada Manila, the company said in a filing.
The widened loss came despite significant improvement in the company’s pachislot and pachinko arm, which it refers to as the Amusement Equipments Business.
Publishing its FY25 results on Friday, UEC revealed a 30.4% year-on-year improvement in net sales across its Amusement Equipments Business to JPY56.7 billion (US$371 million) with a segment operating profit of JPY10.7 billion (US$70 million), up 45.8%. This, the company explained was aided by the “timely introduction of new models” which saw unit sales grow from 92,150 units in the previous fiscal year to 115,000 units.
However, UEC noted that market conditions in the Philippines, where Okada Manila is one of four integrated casino resorts in the Entertainment City precinct, remain challenged due to a contraction in the VIP market.
“Temporary factors such as decreased visitor numbers caused by inclement weather and political instability compounded the situation, resulting in gaming revenue falling below the previous year’s level,” UEC explained. It also revealed a significant impairment alongside “increased selling, general and administrative expenses, including depreciation at Okada Manila”.
As a result, net sales at Okada Manila fell 20.2% year-on-year to JPY65.4 billion (US$428 million) with an operating loss of JPY7.11 billion (US$46.6 million) and a 47.4% decline in Adjusted Segment EBITDA to JPY10.3 billion (US$67.4 million).
Despite gaming revenue challenges, UEC said its integrated resort demonstrated resilience in customer engagement with REWARD CIRCLE members rising from 79,000 to 102,000 during the year and monthly active membership increasing 0.8%.
Looking to capitalize, the company said it will prioritize mass-market customer acquisition at Okada Manila through loyalty programs and regional partnerships, including travel agency collaborations and international marketing offices.
“In the non-gaming business, the Pearl Wing room renovation program progressed and additional two floors are scheduled for completion in 2026,” UEC stated. “To enhance guest in-room experience, tablet upgrades and refreshed guest-experience training programs are planned for rollout.
“Okada Manila will continue to focus on introducing new gaming products and driving innovation in the market. Our commitment is to deliver fresh and exciting experiences that elevate the gaming landscape and keep our offerings dynamic and engaging for our guests.”
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