Japanese company Universal Entertainment Corp. said its local gaming business under Okada Manila is expected to book a 15-billion-yen (P7 billion) decline in revenues this year following the suspension of operations with the implementation of Luzon-wide enhanced community quarantine.
Universal Entertainment said Okada Manila had suspended operations since March 15 in response to the request of the Philippine Amusement and Gaming Corp. to stop all gaming operations amid the increasing threat of coronavirus disease 2019.
It said while the enhanced community quarantine was extended until April 30, it assumed that the operational suspension of Okada Manila could be extended for another half a month, or a total of two months.
“As the quarantine impact caused by the operation suspension for two months, it is expected that net sales will decrease by 15 billion yen, operating income will decrease by 6 billion yen and net income attributable to owners to decrease by 6 billion yen,” Universal Entertainment said.
“Due largely to these factors, the company has elected to perform a downward revision for consolidated business results for the full fiscal year as above,” it said.
Okada Manila registered total revenues of P9.1 billion in the first quarter, down 9.45 percent from P10.05 billion in the same period last year because of the temporary shutdown of operations beginning March 15.
Gross gaming revenues reached P8.63 billion in the first three months, down 9.2 percent from P9.51 billion in the same period in 2019.
It said that of the P8.630 billion gross gaming revenues, VIP gaming tables contributed P4.57 billion, followed by electronic gaming machines with P2.3 billion and mass gaming tables with P1.69 billion in revenues.
Non-gaming revenues, including hotel, food and beverage and entertainment, amounted to P470 million in the first quarter, also down 16.5 percent from P538 million in 2019.
It said gaming revenues of Okada Manila declined 54 percent in March to P1.51 billion from P3.29 billion a year ago.
Okada Manila is one of the operators of integrated resort and casino in Pagcor Entertainment City in Paranaque City.
Universal Entertainment acquired 66.6-percent stake in Asiabest Group International Inc. in February last year in preparation for a possible backdoor listing of its Philippine gaming business.
