Tripling room inventory
Universal Entertainment Corp., parent company of the firm that runs Okada Manila in the Philippines, expects the addition of 1,000 new hotel rooms at the integrated to produce significant new revenues. The resort saw a sequential decline in net sales in the third quarter, according to results released November 23.
Net sales, or gross gaming revenue minus taxes and jackpots, were down 4.3 percent to JPY12.19 billion (US$107.9 million) for the period, with operating losses up 7.8 percent to JPY1.74 billion (US$15.4 million), reported Inside Asian Gaming.
The drop in sales was attributed to higher VIP table game revenue in the second quarter due to a “one-time temporary spike in volumes due to junket grand opening events.” When that spike is not factored in, Universal pointed out, sales actually increased in the third thanks to new marketing initiatives and the improved operation of gaming tables and slots. With the highest number of tables and machines in the Philippines, Okada Manila saw a big jump in adjusted EBITDA to JPY1.08 billion (US$9.5 million), up from JPY269 million (US$2.4 million) in the second quarter and JPY20 million in the first quarter of 2018.
“The increase in the adjusted segment EBITDA is attributed to increasing gross gaming revenues from the first quarter to the third quarter and greater proportion of higher margin mass market gross gaming revenues,” Universal stated.
The company says revenues will soar as 1,000 new hotel rooms come online, tripling the current inventory of about 500 available rooms.
“We will continue to expand attractions and amenities with the highest priority,” Universal said. “In the fourth quarter of 2018, additional hotel rooms are expected to be open. This will help support continued growth in the casino business as well as better position the resort to host large group events and foreign tour groups.
“VIP casino revenues are expected to continue growing driven by the addition of new junkets, and improved room supply and amenities attracting more demand from existing junkets.
“Mass market table and gaming machine revenue is expected to continue growing as marketing initiatives continue to be implemented and improved and the property continues to ramp up. Increasing number of hotel rooms, retail outlets and other amenities is expected to drive additional visitation and mass market casino revenues.”
Late last month Universal released its October gaming figures for Okada Manila, with GGR at PHP2.68 billion (US$51 million) and adjusted EBITDA at Php370.6 million (US$7 million). Both figures are the highest of any month since Okada Manila opened in late 2016.
