Okada Manila reports losses as Covid impacts mass gaming business. Philippines integrated resort Okada Manila posted an operating loss of JPY 1.72 billion (US$16.0 million) on the back of a 23.7% decline in Adjusted segment EBITDA to JPY 2.17 billion (US$20 million) for the three months to 31 March 2020.
This comes following the reduction in visitation and the suspension of operations during Covid-19. Parent company Universal Entertainment Corp revealed a 4.4% decline in VIP rolling chip turnover at Okada Manila to Php125.24 billion (US$1.16 billion) but a substantial 25.4% fall in mass table drop to Php3.50 billion (US$32.5 million).
Universal said that Okada Manila had been tracking well until its operations were suspended, “mainly because of the patronage of guests who live in the Philippines. The hotel occupancy rate was very high in the first quarter until the suspension began,” it was quoted saying.
Universal noted that while the impact of COVID-19 on its 1Q20 business was relatively small, it expects a far greater impact on second quarter results with Okada Manila still closed and pachinko halls in Japan having briefly suspended operations through May.
The company is currently creating a business resumption plan for Okada Manila in order to restart operations as soon as casinos in the Philippines are allowed to reopen.
[image: Universal Entertainment]