Key Moments:
- Universal Entertainment revised its full-year net outlook to a JPY 14.8 billion (€92 million) loss
- Q3 2025 VIP rolling chip volume dropped by 50 percent to PHP 40.7 billion (€665 million)
- Okada Manila posted a 14.5 percent decline in total revenue for the third quarter
Sharp Forecast Reduction for 2025
Universal Entertainment, the parent firm of Okada Manila, has significantly reduced its fiscal 2025 forecast after its Philippine operations saw a downturn. The company cited a substantial decrease in VIP gaming activity, which has not only weakened its mass-market growth but also contributed to lower performance in non-gaming sectors.
Performance Metrics Across Business Segments
| Metric | Q3 FY2025 | Year-on-Year Change |
|---|---|---|
| Gross Gaming Revenue (GGR) | PHP 6.97 billion (€114 million) | -15.2% |
| VIP Rolling Chip Volume | PHP 40.7 billion (€665 million) | -50% |
| VIP Table Revenue | PHP 1.46 billion (€23.8 million) | -40.8% |
| Online Mass-Table Volume | – | -38.5% |
| Machine Wins | – | -9.2% |
| Non-Gaming Revenue | – | -7.4% |
| Okada Manila Total Revenue (Q3) | – | -14.5% |
The mass-market division showed varied results as live table games reported modest improvements, yet online mass-table volumes slid 38.5 percent and machine wins contracted by 9.2 percent, reflecting decreased consumer discretionary spending.
Non-Gaming and Amusement Equipment Strain
Universal Entertainment indicated mounting pressure on its non-gaming business, recording a 7.4 percent year-on-year fall in revenue from hotel, food, beverage, and retail areas. This drop is said to be linked to a decrease in tourist numbers, notably from China and South Korea. The company also revealed that new game releases in its equipment unit, scheduled for the fourth quarter, have been postponed owing to delayed type-approval processes, placing additional strain on sales and profit margins.
Broad Market Dynamics and Strategic Response
The Philippine gaming environment is changing rapidly, with land-based casino revenue declining by 5.9 percent in the first half of 2025, as digital verticals such as e-games now contribute more than half of the market’s gross gaming revenue. Okada Manila’s revenue dip of 14.5 percent in the third quarter, largely due to weakness in the VIP segment, reflects broader integrated resort sector challenges. Analysts have suggested that new regulatory measures – such as e-wallet payment restrictions and the phasing out of the POGO (offshore gaming) sector – may have contributed to the shrinking VIP market.
Despite VIP woes, Okada Manila saw a two percent increase in its adjusted EBITDA, attributing this gain to stronger cost controls outside gaming operations. Universal described operating conditions as subject to “rapid changes” and “more challenging than previously expected,” referencing external economic and regulatory headwinds.
Strategic Shifts and Risk Management
In response to the ongoing turbulence, Universal Entertainment intends to revise its focus, prioritizing the mass-market segment and further strengthening capital and risk management. The company warned that continued underperformance in VIP offerings or failure to ramp up non-VIP growth could result in sustained margin contraction.
- Author
Daniel Williams
