Universal Entertainment Corp. can extend its gratitude to Wynn Resorts for having a successful 2018, although Wynn might not take the appreciation seriously. The Japan-based gaming company said in a filing with the Tokyo Stock Exchange (TSE) last Thursday that its net profit came in at around $1.56 billion last year – up from the $121.47 million it lost a year earlier – due primarily to a settlement between the company and Wynn.
Wynn paid Universal $1.437 billion in compensation last year in order to settle a dispute over stock redemptions. Part of the reason for the 2017 losses stemmed from the litigation over that dispute.
Net sales at Universal increase to just under $843.67 million in 2018, a significant jump above the $620.06 million it reported a year earlier. The increase came as revenue increased from both the sale and manufacture of pachinko machines, as well as an increase in revenue at the Okada Manila. The Okada Manila was able to add more hotel rooms and restaurants, as well as open new VIP gaming areas and cater to gamblers on junkets, in order to lift its sales.
In its filing with the TSE, Universal stated, “[The] Philippine gaming market in 2018 continued to grow at an annual rate in excess of 13 percent, and [the] Okada Manila’s share in the market increased due to the opening of integrated resort components and differentiations in terms of the scale of facilities and the quality of services.”
It added, “VIP casino revenues are expected to continue growing driven by the addition of new junkets, and more demand from existing junkets.”
The Okada Manila will soon see additional hotel rooms open in its Tower B. This will help the resort continue its increase in revenue, as well as help it compete better against other venues in the area as it will be able to host larger events and foreign tour groups.
The operating loss for Universal last year was around $56.17 million on net sales of approximately $442.71 million. Adjusted EBITDA (earnings before interest, taxation, depreciation and amortization) was a little more than $37 million and quarterly EBITDA continued to grow throughout 2018.
