Japan’s Universal Entertainment Corp has reported a consolidated loss attributable to owners of the parent of JPY19.22 billion (US$183 million) in 2020, with gains in its pachinko segment offset by the impact of COVID-19 on its Philippines integrated resort, Okada Manila.
According to the company’s FY20 results, published Friday, Okada Manila posted a 61.2% decline in net sales to JPY27.70 billion (US$264 million), down from JPY71.41 billion (US$650 million) in 2019, as a result of the COVID-19 pandemic. The Philippines government ordered all casinos closed from 15 March and it was almost six months before they were allowed to resume operations from 9 September with capacity capped at 30%. Those restrictions remain in place to this day.
As a result, Okada Manila contributed a segment loss of JPY9.0 billion (US$86 million) for the year, compared with a loss of JPY1.39 billion (US$13.3 million) in 2019, with Adjusted segment EBITDA down from JPY13.22 billion (US$126 million) in 2019 to a loss of JPY2.65 billion (US$25.3 million) in 2020.
Universal noted that while gaming revenues at Okada Manila continue to recover in 2021, challenges “still remain based on gaming capacity and overseas travel restrictions still remain.
“Marketing efforts made by Okada Manila have been adjusted to reflect these constraints. Nevertheless, the impact of COVID-19 has not ended.”
Ironically, that impact proved a positive one for Universal’s pachinko business in 2020, which recorded a 19.6% year-on-year increase in net sales to JPY61.79 billion (US$589 million) and an 88.5% increase operating profit to JPY20.38 billion (US$194.4 million).
Universal attributed the sales growth to an increase in demand for new machines as a result of a revision of the standard for interpretation of technological standards, and the launch of several new pachinko game titles.
The company said it sold 139,152 new pachinko machines in 2020