GGRAsia – Okada Manila’s GGR more than doubles in Jan: Universal

Okada Manila’s GGR more than doubles in Jan: Universal

Feb 11, 2019 Newsdesk Latest News, Philippines, Top of the deck

Japanese gaming company Universal Entertainment Corp says preliminary figures show that the Okada Manila casino resort (pictured) in the Philippines recorded gross gaming revenue (GGR) of PHP3.84 billion (US$73.7 million) in January, up nearly 134 percent compared to nearly PHP1.65 billion a year earlier.

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

“The increase in gross gaming revenue was primarily due to higher win rates in VIP and mass table games; volumes in VIP rolling, mass table drop and gaming machine handle remained strong as well,” Universal Entertainment told the Jasdaq Securities Exchange on Friday.

VIP rolling chip volume for January produced “the highest rate of increase” among several gaming business indicators that that had posted “record” highs, the parent added.

January GGR results for Okada Manila included VIP revenue of approximately PHP2.29 billion, an increase of 241 percent from the prior-year period. Mass-market table GGR rose by 66.9 year-on-year, to PHP786 million in January. Gaming machine revenue stood at PHP771 million last month, up 53.3 percent from January 2018.

Universal Entertainment said in Friday’s filing that Okada Manila’s adjusted segmental earnings before interest, taxation, depreciation and amortisation (EBITDA) for January was PHP648.7 million, an increase of 683 percent year-on-year.

“Both gross gaming revenue and adjusted segmental EBITDA for January 2019 reached [a] record [monthly] high,” said the Japanese conglomerate.

Okada Manila has been ramping up its casino business – posting US$522 million in casino GGR last year – against the background of the general expansion in Philippine casino market GGR. The property recorded adjusted segmental EBITDA of PHP2.14 billion in full-year 2018.

Universal Entertainment announced last month an alliance with Chinese travel agency CTS Shanghai Zhongqiao International Travel Service Co Ltd to draw more mainland Chinese gamblers to the Philippines. The tie-up would see the development of “sightseeing tour packages” to the Okada Manila.

The promoters of Okada Manila said last week that they are actively considering rebranding the property. The announcement followed the acquisition of the majority of shares of Philippine-listed company Asiabest Group International Inc.

Universal Entertainment confirmed in a filing on February 4 that it intended to use the already-listed Asiabest to float shares in the Okada Manila casino business on the Philippine Stock Exchange “in the course of 2019”.