Okada Manila Reports US$56 Million Operating Loss in 2018

Universal Entertainment’s flagship integrated resort business, Okada Manila, reported a narrowed operating loss of 6.2 billion yen (about US$56 million) in 2018, helped by higher net sales, and “extremely high” occupancy rate during the year.

According to a filing from Universal Entertainment, its Integrated Resort business posted net sales of 48.9 billion yen (about US$441 million) in the twelve month period, boosted by the expansion of facilities, such as hotel rooms and restaurants, as well as by the grand opening of the VIP casino areas, the addition of junkets and implementation of a mass market casino marketing program.

Philippine gaming market in 2018 continued to grow at an annual rate in excess of 13% and Okada Manila’s share in the market increased due to the opening of Integrated Resort components and differentiation in terms of the scale of facilities and the quality of services.

The integrated resort also reported an “extremely high” hotel room occupancy rate, at 98.3% throughout the year.

Looking ahead, Universal Entertainment says it will continue to expand attractions and amenities at Okada Manila “at the highest priority.”

Additional hotel rooms are expected to open in 2019, which will help support “continued growth in the casino business” as well as better positioning of the resort to host large group events and foreign tour groups.

The company is also expected to grow VIP casino revenues, driven by the addition of new junkets and more demand from existing junkets, while mass market table and gaming machine revenue is also expected to grow as the property ramps up and new casino marketing initiatives come to fruition. (AGB)