Japanese gaming conglomerate Universal Entertainment Corp swung to a net loss in year ending December 31, it said in a Friday filing.
Such loss was JPY5.19 billion (US$47.3 million) compared to a prior-year profit of JPY161.17 billion.
The 2019 loss was despite group net sales rising 34 percent year-on-year, to JPY124.94 billion, from JPY93.27 billion; and net sales at the group’s Philippine casino resort Okada Manila increasing 45.9 percent year-on-year to nearly JPY71.41 billion.
The firm did not recommend a dividend for 2019.
Universal Entertainment makes pachinko and pachislot machines as well as running Okada Manila via its unit Tiger Resort, Leisure and Entertainment Inc.
According to a results presentation filed the same day to Jasdaq, the 2019 balance sheet also included a JPY29.88 billion year-on-year in increase in “construction costs” – understood to be a reference to work at Okada Manila.
The main results filing stated: “At Okada Manila, the highest priority is to continue adding attractions and amenities.”
It added: “Construction of the Coral Wing (Tower B) is nearing completion. When finished, the resulting 993 guest rooms will give Okada Manila the largest hotel in Entertainment City gaming and entertainment complex.”
The control of the Tiger Resort entity has been disputed by Kazuo Okada, the founder and former chairman of Universal Entertainment.
Friday’s main results filing noted: “The pending litigations the company group currently have and the related costs are still ongoing although we already had advantageous decisions.”
But the group noted that the litigation-related costs “are imposing substantial financial costs (high interest rate, costs for fund raising) on us.”
It further noted the group was continuing preparations to take public the Tiger Resort entity “at an early stage to accelerate its growth”. It added: “More information will be disclosed as soon as decisions are made.”
Sep 21, 2023Fitch Ratings Inc has affirmed the long-term issuer default rating of casino operator Genting Malaysia Bhd at ‘BBB’, an investment grade, according to a memo published on Wednesday. The ratings...
Sep 21, 2023
”Genting Malaysia’s revenue rebound has been slower than our expectations, and the impact on leverage has been compounded by Empire’s weak metrics”
Akash Gupta, Shiv Kapoor and Hasira De Silva
Analysts at Fitch Ratings