Universal Entertainment Corporation has downgraded its consolidated business results forecast for the fiscal year ending December 31, 2024. The revision, announced by Universal Entertainment President Tomohiro Okada, reflects sharp reductions across all key financial indicators compared to earlier projections made in February 2024.
Net sales, initially projected at JPY200 billion (€1.22 billion), have been revised down by 37 percent to JPY126 billion (€773 million). Operating profit plummeted from JPY36 billion (€220 million) to JPY2 billion (€12 million), marking a 94.4 percent decrease.
The company also anticipates an ordinary profit deficit of JPY8.7 billion (€53.3 million), a sharp contrast to the previous forecast of JPY20 billion (€122 million) in profit. Furthermore, net income attributable to owners of the parent has shifted from a forecasted profit of JPY19.6 billion (€120.2 million) to a significant loss of JPY18.3 billion (€112 million). This equates to a net income per share drop from JPY252.93 (€1.55) to negative JPY236.15 (€1.45).
Delays and market challenges impact operations
The revisions are attributed to delays in releasing major titles in the company’s Amusement Equipment Business, originally planned for the second half of 2024. Additionally, the Integrated Resort (IR) Business continues to face uncertainty due to a potential sustained decline in VIP customer numbers across the casino market in the Philippines.
“These factors have disrupted our strategic plan, resulting in a substantial shortfall in net sales and an inability to mitigate fixed costs effectively,” the company stated in its report.
Dividend forecasts reduced to align with financial outlook
In tandem with the lowered financial performance expectations, Universal Entertainment has adjusted its dividend forecast for the fiscal year.
“The Company has regretfully decided to revise the year-end dividend forecast downward in line with the revision of the business results forecast. The year-end dividend forecast is revised from 30 yen per share in the last announcement to 0 yen per share, resulting in a total annual dividend forecast of 30 yen per share,” the company explained.
Previous fiscal year comparisons
Universal Entertainment’s actual results for the fiscal year ending December 31, 2023, included net sales of JPY178.99 billion (€1 million) and a net income of JPY28.44 billion (€174.5 million), with dividends totaling JPY40.00 (€0.45) per share.
This sharp reversal highlights the company’s challenges as it navigates shifting market dynamics and operational delays. Universal Entertainment’s financial outlook underscores the need for strategic adjustments to counter these adverse developments.
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