GGRAsia – Universal confirms US$12mln loss over Okada Manila tussle

Universal confirms US$12mln loss over Okada Manila tussle

Dec 15, 2022 Newsdesk Japan, Latest News, Philippines, Top of the deck

Japan’s Universal Entertainment Corp, the founding parent of the Okada Manila casino resort in the Philippines, says it has recorded an extraordinary loss of nearly JPY1.62 billion (US$11.9 million) in the third quarter this year, associated with what it called the “illegal occupation” of the casino complex by people acting on behalf of the group’s ousted founder Kazuo Okada.

“The performance of this business was impacted by the illegal occupation of this property from May 31 to September 2, 2022 by a group acting under the instructions of Kazuo Okada,” stated the company in a Wednesday filing. Universal Entertainment was affirmed as in control of Okada Manila in early September.

It added: “For all payments concerning improper transactions … made by Mr Okada and a group acting under his instructions, as determined by the investigation of this incident, claims for damages have been posted for the recovery of these payments from all recipients, Mr Okada and a group acting under his instructions.”

But the firm said that “after thoroughly examining prospects for collecting these claims,” it had “established an allowance for doubtful accounts in the same amount due to doubts about the ability to receive the amount due”.

In November, Universal Entertainment reported JPY20 million in losses for the second quarter directly linked to the occupation.

In one of a series of Wednesday filings on the group’s results for the three months to September 30, Universal Entertainment said sales in its integrated resort segment “increased as the performance of Okada Manila was strong, with the number of guests recovering to almost the pre-pandemic level.”

Earlier this month, the parent company stated that third-quarter gross gaming revenue at Okada Manila rose 128.3 percent year-on-year, to PHP9.52 billion (US$170.8 million).

Operating profit for the segment “decreased because of higher selling, general and administrative expenses, primarily legal expenses, associated with the illegal occupation of this resort.”

“In the fourth quarter, the number of guests is expected to continue to increase because of more promotions for reward circle members and numerous activities in sectors other than the casino, such as the opening of several new retail tenants and many events,” stated Universal Entertainment.

The Japanese conglomerate reported aggregate sales of JPY88.61 billion for the first nine months of 2022, up 53.6 percent from the prior-year period. It posted a net profit attributable to owners of nearly JPY2.53 billion, compared with a net loss of just below JPY18.40 billion a year earlier.