Summary:
In the third quarter of this year, Universal Entertainment recorded an extraordinary loss of nearly 1.62 billion due to the illegal occupation of the casino complex by people acting on behalf of the casino resort in the Philippines. In September, Universal Entertainment was affirmed as the owner of Okada Manila.
In the third quarter of this year, Universal Entertainment Corp., the founding parent of the Okada Manila casino resort in the Philippines, recorded an extraordinary loss of JPY 1.62 billion (US $11.9 million), due to what it called the “illegal occupation” of the resort.
The performance of this business was impacted by the illegal occupation of this property from May 31 to September 2, 2022, stated the company in a Wednesday filing.
For all payments made by Mr Okada and a group acting under his instructions, claims for damages have been posted for the recovery of these payments from all recipients, Mr Okada and a group acting under his instructions.
After thoroughly examining prospects for collecting these claims, the firm established an allowance for doubtful accounts in the same amount due to doubts about the ability to receive the amount due.
Universal Entertainment lost 20 million dollars in the second quarter, which was linked to the occupation.
Universal Entertainment said in a Wednesday filing that sales in its integrated resort segment increased as the performance of Okada Manila was strong, with the number of guests recovering to almost the pre-pandemic level.
The parent company stated that the third-quarter gross gaming revenue at Okada Manila rose to US$ 170.8 million.
Higher selling, general and administrative expenses, as well as legal expenses, associated with the illegal occupation of this resort, resulted in a decrease in operating profit for the segment.
In the fourth quarter, the number of guests is expected to increase because of more promotions for reward circle members and other activities in sectors other than the casino, such as the opening of several new retail tenants and many events.
The Japanese conglomerate reported aggregate sales of JPY88.61 billion for the first nine months of the year, an increase of 53.6 percent from the prior-year period. The company posted a net profit attributable to owners of over JPY 2.53 billion, compared with a net loss of over JPY18.40 billion a year earlier.