Tougher regulations on gaming machines along with the costs of finishing its giant Okada Manila integrated casino resort has led Japanese gambling giant Universal Entertainment Corporation to report a consolidated net loss of nearly $130 million for the nine months to the end of 2017.
According to a Wednesday press release (pdf) from Universal Entertainment Corporation, the Tokyo-listed gaming machine manufacturer recorded consolidated net sales of just over $643.9 million for the nine-month period although its associated operating profit was in the red to the tune of $92,100.
“Japan’s pachinko and pachislot industry shifted to 5.9 machine regulations in October of 2017 in conjunction with the industry’s voluntary restrictions,” read a statement from Universal Entertainment Corporation. “In February of 2018 the industry will enter a period of significant change due to the enactment of revised rules. As a result, there is very little activity in the industry due to uncertainty about the outlook for the pachinko and pachislot markets and a reluctance of hall operators to purchase new titles.”
Universal Entertainment Corporation is also responsible through its Tiger Resort Leisure and Entertainment Incorporated subsidiary for the Okada Manila venue in the Philippines and revealed that the 110-acre facility saw its net sales for the nine-month period to the end of December improve to $150.6 million. However, it declared that the impact of ‘fixed expenses’ resulted in the Entertainment City venue posting an operating loss of $84,700 while its ‘other business’ segments detailed net sales of around $18,000 alongside an operating profit of just over $3.1 million.
“The focus [at Okada Manila] is heavily on the final stages of construction, which includes completing more hotel rooms, in preparation for full opening,” read the Wednesday statement from Universal Entertainment Corporation. “Construction of the fine dining section with high-end restaurants and shopping mall is also nearing completion and some tenants are expanding operations.”
Universal Entertainment Corporation stated that its current financial results contain ‘costs toward full-scale business expansion’ of its Okada Manila enterprise although it expects total sales to swell due to the ‘growing’ number of visitors ‘led by the casino business’.