In a mirror reflection of the heightened competition across the Macau gaming market in recent years, Japan’s Universal Entertainment Corp (UEC) said it was seeing intense competition among operators in the Manila market which is driving the cost of customer acquisition higher.
The comments formed part of UEC’s 1Q26 financial results, released Thursday. While a strong quarter for the company’s pachinko and pachislot segment drove group-wide sales to JPY28.4 billion (US$179 million), up 4.2% year, and narrowed its loss to JPY1.43 billion (US$9.0 million), UEC noted that its Philippines integrated resort, Okada Manila, faced ongoing challenges due to “structural headwinds” in the local market. Competition with other companies to acquire customers in both the VIP and mass markets is intensifying, it added.
“The gaming market in Entertainment City, Manila, remains in a period of adjustment,” the company explained. “Against the backdrop of structural changes in the VIP market, intense competition among companies to acquire mass-market customers continues, and customer acquisition costs are rising.”
As such, UEC said Okada Manila’s net sales fell 16.0% year-on-year to JPY15.4 billion (US$97.2 million) in 1Q26, with operating profit down 92.8% to JPY23 million (US$145,230) and Adjusted segment EBITDA falling 55.7% to JPY2.04 billion (US$12.9 million).
The IR has responded, it added, by revamping its loyalty program and in recent days officially launching its “OKADA PLAY” online gaming platform. This, UEC said, is specifically targeted at guests who find it difficult to visit Okada Manila in person due to factors such as soaring fuel costs.
“We position ‘OKADA PLAY’ as a service designed to carve out a niche in the highly competitive Philippine online gaming market as a leading challenger, offering a high-quality digital experience that sets itself apart from competitors and aligns with the premium standards of the Okada Manila brand,” it said.
“We have partnered with PhilWeb Corporation, which has a proven track record in regulated gaming platforms and nationwide operations, to provide a seamless and engaging user experience for the growing base of digital gamers.”
UEC also revealed broader concerns around the impact of the ongoing Middle East conflict in both the Philippines and Japanese markets, outlining the need to tread cautiously cross its business segments.
“International organizations are currently discussing downward revisions to growth forecasts and upward revisions to inflation projections, reflecting growing awareness of downside risks to the economic outlook,” it stated. “Furthermore, while the Japanese economy is showing positive signs, such as wage increases and a recovery in inbound tourism demand, rising energy prices and higher raw material costs are weighing on corporate profits and personal consumption, resulting in a sense of weakness in economic sentiment.
“In particular, given Japan’s high dependence on energy imports and its vulnerability to developments in the Middle East, there are concerns that, depending on crude oil price trends, the country could face the risk of both rising prices and an economic slowdown occurring simultaneously.
“Given that high levels of uncertainty persist both globally and domestically, we recognize that we must carefully assess the business environment in which we operate.”
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