GGRAsia – Okada Manila books best-yet EBITDA in October

Okada Manila books best-yet EBITDA in October

Nov 14, 2018 Newsdesk Latest News, Philippines, Top of the deck

Japanese gaming company Universal Entertainment Corp says its Okada Manila casino resort (pictured) in the Philippines recorded adjusted segment earnings before interest, taxation, depreciation and amortisation (EBITDA) of PHP370.6 million (US$6.98 million) last month, the most of any month since its soft launch at the end of 2016.

The casino resort’s EBITDA was boosted by increased revenue growth, higher-margin mass-market revenue, more favourable arrangements with junket operators and by reducing the company’s fixed-cost ratio, the company stated.

Universal Entertainment told the JASDAQ Securities Exchange that the 500-live-table Okada Manila had gross gaming revenue of nearly PHP2.68 billion last month, the most of any month yet, excluding May this year when opening events led to a spike in revenue.

Last month’s data shows higher win rates in the VIP and mass market segments for both table games and gaming machines. Newly contracted junkets for VIP players and marketing initiatives aimed at the mass market helped increase revenue and patronage, said the firm.

In the Okada Manila hotel business, the average daily room rate was PHP9,241 last month and the occupancy rate was 97.7 percent, Universal Entertainment said.

Reports of the casino’s monthly results are a novelty. The company announced last month that it was changing the arrangements that govern its relations with investors, to keep them better informed. The company failed to say why it is changing the arrangements.

The casino resort is at the heart of a tussle between the man it is named after, Japanese gaming veteran Kazuo Okada, and Universal Entertainment. The ousted Universal Entertainment founder, Mr Okada is trying to regain control of the company, and he and the company are in dispute in the public arena about several aspects of how it is run.

On Monday Universal Entertainment Corp reported net profit of JPY167.97 billion (US$1.47 billion) in the third quarter of this year on net sales of JPY67.01 billion.

The company changed its financial year last year, so no suitable comparison can be made with its results in any previous quarter.

A Philippine subsidiary, Tiger Resort, Leisure and Entertainment Inc, runs the Okada Manila.