Philippine integrated resort Okada Manila's operator, Japan Universal Entertainment Corporation, announced its latest financial report, with total gaming revenue for the third quarter of 2023 amounting to 6.97 billion pesos (approximately 120 million USD), a 15.2% decrease from the same period last year's 8.23 billion pesos. Among them, VIP business revenue significantly decreased to 1.46 billion pesos (approximately 25.14 million USD), and the total betting amount decreased from 94.29 billion pesos to 40.69 billion pesos. Slot machine revenue slipped from 3.3 billion pesos to 3 billion pesos, while mass table game revenue slightly rose from 2.45 billion pesos to 2.5 billion pesos. Despite the decline in gaming revenue, hotel occupancy rates increased from 84% to 87%, and the resort welcomed 1.41 million visitors this quarter, indicating that the general visitor market remains active. The performance decline is mainly due to the reduction in high-end customers and the impact of strengthened regional gaming regulation.
Quarterly Performance Overview
Japan Universal Entertainment Corporation announced the third quarter financial data for Okada Manila, with total gaming revenue of 6.97 billion pesos (approximately 120 million USD), a 15.2% decrease from 8.23 billion pesos in the same period of 2022. This decline reflects challenges in the Philippine gaming market, particularly in the high-end customer segment.
The decline in revenue was mainly evident in the VIP business segment, while the mass market business remained relatively stable, indicating a shift in market structure.
VIP Business Performance Analysis
VIP business revenue significantly decreased to 1.46 billion pesos (approximately 25.14 million USD), nearly halving compared to the same period last year. The total betting amount (rolling volume) drastically dropped from 94.29 billion pesos to 40.69 billion pesos, a staggering reduction.
The loss of high-end customers became a major factor in the performance decline, reflecting changes in regional gaming market patterns and customer behavior.
Mass Market and Slot Machine Revenue
Mass table game revenue slightly rose from 2.45 billion pesos to 2.5 billion pesos, an increase of 2%, showing relative stability but limited growth. Slot machine revenue decreased from 3.3 billion pesos to 3 billion pesos, a reduction of about 9.1%, indicating that this business segment is also facing pressure.
Although the mass market is growing slowly, it remains an important source of revenue and customer flow for the resort.
Non-Gaming Business Performance
Despite the decline in gaming revenue, the resort's non-gaming business remained stable. Hotel occupancy rates increased from 84% to 87%, indicating strong demand for accommodation. The resort welcomed 1.41 million visitors this quarter, a year-on-year increase of about 3.6%.
The stable performance of non-gaming businesses helped mitigate the overall impact of the decline in gaming revenue, maintaining the basic operational level of the resort.
Regional Market Environment and Challenges
Strengthened gaming regulation in Southeast Asian countries is one of the significant factors affecting performance. The reduction in Chinese gamblers and capital withdrawal also put pressure on the Philippine casino industry. Increased regional competition and changes in the market environment have further dispersed high-end customer resources.
These external factors collectively lead to a potential risk of "apparent prosperity but actual decline" in the Philippine casino industry.
Operator Response and Strategy
Japan Universal Entertainment Corporation has not yet announced specific response strategies, but industry analysis suggests the need to adjust customer structure. Increasing the development of mid-tier customers and enhancing the proportion of non-gaming businesses may become future directions.
The resort needs to adapt to market changes, reduce dependence on a single high-end customer group, and establish a more balanced business model.
Industry Impact and Trends
The performance changes at Okada Manila reflect the overall trend in the Philippine gaming market. The reduction in high-end customers may become a common phenomenon in the industry, while the stability of the mass market is worth attention. The importance of non-gaming businesses is increasingly highlighted, becoming a key support for resort operations.
The industry may need to reassess its business structure and customer strategy to adapt to the new market environment.
Future Outlook and Expectations
Despite current challenges, the Philippine gaming market still has development potential. The stability of the mass market and the growth of non-gaming businesses provide foundational support for the industry. The regional market may find a new balance after adjustments, but it requires time and strategic adaptation.
Industry participants need to focus on long-term development trends rather than short-term fluctuations and develop corresponding growth strategies.
