Tiger Resort, Leisure and Entertainment Inc., the operator of Okada Manila, released its financial report for the second quarter of 2024, highlighting key figures and trends in the resort’s gaming and non-gaming segments.
Gross Gaming Revenue Overview
In the three months ending June 30, 2024, Okada Manila reported a gross gaming revenue (GGR) of Php11.3 billion (US$194 million). This represents a 21.8% decline from the previous year, driven by substantial decreases in the VIP and gaming machine segments. Despite this overall decline, the second quarter’s performance showed a slight improvement compared to the first quarter of 2024.
VIP Gaming Tables
GGR from VIP gaming tables totaled Php2.90 billion (US$49.7 million) in 2Q24, marking a significant 34.5% decrease year-on-year. This decline reflects broader trends in the VIP gaming sector, impacting Okada Manila’s revenue streams.
Gaming Machines
Revenue from gaming machines amounted to Php2.97 billion (US$50.9 million), down 21.8% from the previous year. This segment also faced challenges, albeit to a lesser extent compared to VIP tables.
Mass Gaming Tables
GGR from mass gaming tables experienced a more modest decline, decreasing by 3.4% to Php2.97 billion (US$50.9 million). This segment remained relatively stable compared to the sharper declines seen in VIP and gaming machines.
Non-Gaming Revenue
Non-gaming revenue, including hospitality, entertainment, and other services, increased by 9.7% to Php1.0 billion (US$17.1 million). This growth suggests a diversification strategy that offsets some of the declines in gaming revenue.
Visitor Trends and Operational Metrics
Total property visitors at Okada Manila grew slightly to 1.45 million in 2Q24, up from 1.42 million in the same period last year. This increase in footfall indicates ongoing interest in the resort despite challenges in gaming revenue.
Financial Performance Overview
Adjusted segment EBITDA for the quarter declined by 30.0% year-on-year to Php2.15 billion (US$36.8 million). This decrease in EBITDA reflects the impact of lower gaming revenues despite efforts to manage costs and enhance operational efficiencies.
Year-to-Date Performance
For the first half of 2024, Okada Manila’s combined GGR decreased by 23.0% year-on-year to Php17.6 billion (US$301 million). Adjusted segment EBITDA for the same period also declined by 30.0% to Php4.45 billion (US$76.2 million). These figures underscore the ongoing challenges faced by the resort amid broader economic and industry-specific factors.
Okada Manila’s second quarter results highlight a mixed performance characterized by significant declines in gaming revenue, particularly in the VIP and gaming machine segments. Despite these challenges, the resort has shown resilience in non-gaming revenue streams and has managed to attract a steady flow of visitors. Looking ahead, navigating the evolving landscape of the integrated resort industry will require strategic adjustments to capitalize on growth opportunities while mitigating risks associated with gaming revenue volatility.