Japan’s Universal Entertainment Corp (UEC) has reported robust financial results for the third quarter of 2023, showcasing a notable 38.7% year-on-year increase in net sales, reaching JPY44.8 billion (US$297.5 million). The impressive performance was attributed to the flourishing pachinko business and the expanding market share of the Philippines integrated resort, Okada Manila.
Financial Highlights:
UEC’s consolidated 3Q23 results revealed a substantial 38.7% year-on-year surge in net sales, amounting to JPY44.8 billion. Additionally, Adjusted EBITDA witnessed a remarkable increase of 63.2%, totaling JPY12.9 billion (US$85.7 million). These financial milestones underscore UEC’s effective strategies in driving revenue and operational efficiency during the reported quarter.
Okada Manila’s Market Share Growth:
Okada Manila, the integrated resort operated by UEC, saw its share of the Manila licensed casino market rise to 26.0% in Q3, up from 25.5% in Q2 and 24.9% a year ago. This marks the highest market share outside of COVID-impacted quarters since 4Q19. The sustained growth underscores the success of Okada Manila’s market positioning and operational initiatives.
Contribution of Okada Manila to Sales:
Sales from Okada Manila played a pivotal role in UEC’s overall performance, contributing JPY27.2 billion (US$181 million) in 3Q23. This represents a substantial increase of 34.4%, emphasizing the integral role played by the integrated resort in driving revenue for the company.
Pachinko Business Growth:
UEC’s Amusement Equipment Business, comprising pachinko and pachislot, recorded sales of JPY17.3 billion (US$115 million) in 3Q23, reflecting a notable growth of 46.5%. This segment’s performance highlights the continued popularity and profitability of pachinko, contributing significantly to UEC’s overall sales.
Nine-Month Performance Overview:
The cumulative performance for the first nine months of 2023 showcased a 40.0% year-on-year increase in net sales, reaching JPY124.1 billion (US$824 million). Adjusted EBITDA during this period saw a substantial rise of 69.1%, totaling JPY36.5 billion (US$242 million). Net income attributable to owners of the parent surged by an impressive 847% to JPY23.9 billion (US$159 million).
Strategic Initiatives for Okada Manila:
UEC highlighted ongoing efforts to enhance Okada Manila’s performance, including the recently launched Okada Manila Go campaign. This campaign focuses on attracting foreign tourists through weekly draws for gaming members, offering travel prizes such as round-trip tickets to Manila, bus tickets, and free hotel stays. The aim is to elevate the brand’s awareness in the Philippines and beyond, contributing to sustained growth in the Integrated Resort Business.
Come Home to Harmony at Okada Manila Campaign:
UEC has initiated the “Come Home to Harmony at Okada Manila” campaign, emphasizing a guest-centric approach to provide a comfortable and welcoming experience. By aligning with the wishes and needs of guests, Okada Manila aims to become a second home in the heart of Metro Manila, fostering increased demand and positioning itself as a significant source of growth for the Integrated Resort Business.
Universal Entertainment Corp’s strong performance in Q3 2023, propelled by the success of Okada Manila and the growth in its pachinko business, reinforces the company’s strategic positioning in the gaming and entertainment industry. The sustained market share expansion and financial achievements underscore UEC’s commitment to innovation and customer-centric initiatives, setting the stage for continued success in a dynamic market landscape.