Universal Entertainment Corp, the Japan-based gaming conglomerate, is used to making its income off of pachinko games. However, it is also on a mission to expand into the casino market and 
already operates the Okada Manila in the Philippines. That casino first launched in December 2016 and has added new installations in various stages since. In its latest financial filing, Universal indicates that the casino may not be living up to its expectations.
According to Universal, the operating loss of Okada rose in the third quarter by $1.09 million. It grew to $15.28 million, primarily driven by an increase in amortization and depreciation.
Okada Manila generated an adjusted EBITDA (earnings before interest, taxation, depreciation and amortization) of $9.488 million during the third quarter. This equates to an increase over the second quarter EBITDA—$2.36 million—of 302%. The adjusted EBITDA for the first quarter was $175,715.
VIP rolling chip volume during the latest quarter decreased 30% compared to the previous quarter. The chip volume was $1.89 billion, while the second-quarter figures reported a chip volume of $2.69 billion.
Gaming machine and mass table sales increased in the most recent quarter, thanks in part to “a number of new marketing initiatives. Some of these included “improvements in loyalty programmes and promotions” and can also be attributed to “better operation of tables and gaming machines of which we have installed the largest numbers in Philippines.”
Mass table drop, which is measured on 232 mass tables, was almost $83.22 million. This was up from the previous quarter, which saw $72.89 million. The gaming machine handle increased as well, climbing 9.5% to $598.55 million.
Universal also indicated that there should be more increases in the last quarter of the year. It explained, “In the fourth quarter, additional hotel rooms are expected to be open. This will help support continued growth in the casino business as well as better position the resort to host large group events and foreign tour groups.”
The company further expects good things from VIP casino revenues, stating that they would “continue growing driven by the addition of new junkets, and improved room supply and amenities attracting more demand from existing junkets.”
