Universal Entertainment dips further, reports $52M loss in Q1 2025
Japan’s Universal Entertainment Corporation reported a net loss of $52 million (€46.4 million) in the first quarter of 2025, significantly impacting the company’s financial outlook and prompting a strategic pivot toward online gaming.
In its financial results for the March 2025 quarter, in group-wide sales to $186 million (€172 million). The company recorded an operating loss of $17.1 million (€15.8 million), with net losses attributable to shareholders reaching $51.5 million (€47.5 million), a stark reversal from the $23.5 million (€21.7 million) profit posted in the same period last year.
Downturn felt across all segments
The downturn was felt across all core segments. Universal’s Amusement Equipment Business, which includes pachislot and pachinko machines, saw net sales fall by 36.9 percent to $59.6 million (€55.0 million), resulting in an operating loss of $8.2 million (€7.6 million). This reflects ongoing difficulties in Japan’s declining pachinko market.
Revenue peaked in Q1 FY2024 at $257.9 million (€239 million), dipped to $ 199.9 million (185 million) in Q2, and modestly recovered in Q4 to $234.2 million (€ 217 million). However, Q1 FY2025 revenue declined further to $186.2 million (€172 million), marking a 20.8 percent drop year-on-year and underlining ongoing operational challenges.
Meanwhile, Okada Manila reported net sales of $125 million (€116 million) for the quarter, a nearly 10 percent year-on-year decline. The company attributed this to reduced tourist traffic from key markets such as South Korea and China, as well as a broader downturn in the VIP gaming sector.
POGO crackdown a pivotal contributor
The decline in VIP volumes has been partly linked to the Philippine government’s crackdown on POGOs (Philippine Offshore Gaming Operators), which had previously driven significant high-roller traffic to integrated resorts. Adjusted segment EBITDA at Okada Manila dropped 23.6 percent year-on-year to $31.4 million (€29 million).
In response, Universal is enhancing its marketing efforts to attract more visitors from regions outside Luzon, where Manila is located, and from overseas markets including Japan, South Korea, and Southeast Asia. The company is also investing in staff recruitment and training to support these initiatives.
At the centre of Universal’s revised strategy is its new online gaming platform, launched in 2024. The firm plans to expand its digital offering and strengthen customer engagement through its loyalty programme, Reward Circle. Universal hopes this digital shift will help stabilise revenues and pave the way for long-term recovery and growth.
