Okada Manila GGR down 49% in Q2
Universal Entertainment Corp has reported that Okada Manila’s GGR was down 49 per cent sequentially in the second quarter.
The Philippines.- Okada Manila has reported gross gaming revenue (GGR) or PHP2.61bn (US$52.1m) for the second quarter. That’s a fall of 49 per cent from the previous quarter.
Universal Entertainment Corp, which operates Okada Manila, said the casino remained affected by Covid-19 countermeasures.
The company reported that VIP table game GGR fell by 35.2 per cent in the three months to June 30 while mass table game revenue declined by 38.9 per cent quarter on quarter to PHP526m. Gaming machines revenues dropped by 69.6 per cent to PH578m.
Adjusted segment EBITDA was negative PHP204m compared to a positive figure of PHP692m in the opening quarter of 2021.
In the first quarter of the year, GGR came in at PHP5.10bn (US$1.05bn), down from PHP8.64bn in the first three months of 2020. Adjusted segment EBIDTA fell by 35 per cent to PHP692m.
Metro Manila will remain under general community quarantine (GCQ) until July 15. Casinos were allowed to resume operating at a reduced capacity in May after being closed in March.
Fitch Ratings maintains CCC+ default rating for Universal Entertainment Corp
In May, Fitch Ratings revised its outlook for the gaming company and lowered it from B to CCC+, suggesting default is a real possibility for the group.
Fitch said that unless Universal Entertainment saw significant improvement in the second half of the year 2021, it may have insufficient liquidity to meet the repayment of its senior notes. Ongoing travel restrictions and lockdowns ould lead to further cash burn and deteriorating liquidity
Despite the issue of additional notes due in 2024 outside of Japan, Fitch said there is still uncertainty over the company’s liquidity.
It said: “This is because the positive impact of the tap issuance is counterbalanced by ongoing uncertainty over Universal Entertainment’s liquidity and free cash flow generation.”
Through the issue of additional notes, the operator aimed to redeem the outstanding principal amount of US$118m of the company’s existing notes due 2021, which were privately placed outside Japan in December 2018.
