Entertainment <\/p>\n
Universal Entertainment Corporation of Japan (UEC) posted a 30% loss in net revenue for fiscal 2024. Factors include a drop in VIP play at its Manila integrated resort and\u00a0a decline in gaming machine sales at home.<\/strong><\/p>\n The pachinko and casino operator, based in Tokyo, Japan, reported a net loss of $102.8 million<\/a> (JPY15.6 billion\/\u00a382.5 million\/\u20ac99 million) from net sales of $834 million, a 29.4% drop. Operating profit plummeted 90.1% to $19.8 million.<\/p>\n UEC attributed the downturn to a slide in VIP gaming at Okada Manila <\/a>in the Philippines capital and a sharp decline in pachinko and pachislot machine sales in Japan.<\/p>\n Okada Manila posted net sales of $541.4 million, down 15.4% from 2023 as VIP gaming lagged. Despite increased footfall at the integrated resort, gaming revenue plummeted 21.8% to $599.4 million.<\/p>\n \u201cThe slowdown of the junket business negatively affected the overall market conditions for the casino business in the Philippines,\u201d UEC stated in its financial report, issued on 13 February. <\/p>\n \u201cAlthough sales in the mass market and gaming machine category has steadily increased overall since the pre-pandemic peak sales of this business in 2019, their performance in the fiscal year 2024 was down from the previous year when demand significantly rebounded following the pandemic.\u201d<\/p>\n UEC also pointed to higher personnel expense at the IR, and \u201ca foreign exchange gain as the Japanese yen continued to depreciate against US dollar\u201d.<\/p>\n However, it added: \u201cIn the hotel and food and beverage businesses, the number of guests is consistently high and revenue continues to increase.\u201d<\/p>\n In Japan, meanwhile, sales in UEC\u2019s gaming-machine division fell 46.3%. <\/p>\n \u201cOur strategy was to concentrate the release and sale of several major titles in the second half of the year,\u201d stated UEC. However, a number of new products stalled in the testing phase and were pushed to 2025. As a result, sales volume in the second half of 2024 was limited to 49,000 units, with total sales of 92,000 pachislot and pachinko units.<\/p>\n UEC expressed optimism about the near term. \u201cThe game elements of smart pachinko machines are to become richer. The emergence of hit titles (will lead) to the revitalisation of the market\u201d and UEC\u2019s market share.<\/p>\n According to the Jakota Index<\/a>, UEC anticipates a return to profitability in 2025, with projected net revenue of $990.3 million. <\/p>\n Overall, the Philippines broke records for gross gaming revenue<\/a> last year, thanks in large part to online games. The sector reaped $6 billion, exceeding initial government targets of $5.75 billion, significantly higher than the $4.9 billion generated in 2023.<\/p>\nPost-pandemic adjustment<\/h2>\n
A slump in gaming machine sales <\/h2>\n
In the plus column<\/h2>\n