Okada Manila H1 2026: IR EBITDA Crashes 62.5% on VIP Collapse

Kyle Kevin

iGaming Writer

Fact Checked

Okada Manila’s IR segment EBITDA collapsed 62.5% in H1 2026. VIP win fell 40%. The company is betting on online gaming and Japanese tourism to turn a profit in the second half.

62.5%. That is how far Okada Manila’s integrated resort segment EBITDA fell in the first half of 2026. Universal Entertainment Corporation reported adjusted segment EBITDA of just JPY2.74 billion ($17.4 million), down from a much stronger base a year earlier. Net sales from the IR business dropped 13% to JPY30.13 billion ($191 million). The operating loss widened slightly to JPY1.37 billion ($8.7 million). The company blamed weak VIP play, intensified competition in Entertainment City, and macroeconomic pressures linked to Middle East conflicts. However, the group-level picture tells a different story. Universal Entertainment’s amusement equipment division surged 69% in sales, lifting consolidated net income into positive territory. The IR is bleeding. The pachinko machines are carrying the load.

Okada Manila H1 2026: The Damage

At the property level, Okada Manila’s first-half gaming revenue declined 15.9% to PHP12.52 billion ($203 million). The breakdown is stark. VIP win collapsed 40% to PHP2.44 billion ($39.6 million). Mass-table win dropped 11.1%. Gaming-machine win decreased 3.3%. Only slot machines showed relative resilience. The decline came despite property visitation actually increasing 2.4% to 2.88 million. More people walked through the doors. They spent less, especially at the high end.

Non-gaming revenue held steady at PHP1.87 billion ($30.4 million). That is virtually unchanged from the prior year. The flat non-gaming line is a small mercy in an otherwise grim report. Hotel occupancy, retail, and food & beverage are not growing, but they are not collapsing either. The problem is concentrated in gaming, and within gaming, it is concentrated in VIP.

The consolidated figures, released Friday, follow preliminary Q2 operating data that Tiger Resort, Leisure and Entertainment Inc. (TRLEI) — Okada Manila’s operator — issued in July. The earlier disclosure covered April to June. The latest results cover Universal Entertainment’s consolidated accounts for the six months to June 30. The gap between preliminary property-level data and full consolidated numbers is narrow, which suggests the Q2 trend was consistent with the half-year pattern.

VIP Collapse and Competitive Pressure

The 40% VIP win collapse is the headline number, but the underlying dynamics are more complex. Universal Entertainment cited domestic political conditions and economic pressures linked to Middle East conflicts as factors dampening high-roller sentiment. The Philippines has faced elevated geopolitical risk, including tensions in the South China Sea, that can spook wealthy regional players. In addition, Entertainment City has become crowded. City of Dreams Manila, Solaire Resort, and Resorts World Manila are all competing for the same premium-mass and VIP segments.

Universal Entertainment is responding by shifting toward premium mass. The company plans to strengthen direct marketing across Japan, South Korea, Taiwan, Singapore, Thailand, and Malaysia. These are traditional source markets for Philippine IRs, but the approach is now more targeted. Rather than chasing volume, Okada Manila wants higher-yield players who spend more per visit. The strategy makes sense on paper. Premium mass carries lower credit risk than VIP and higher margins than slots. However, it is also the most competitive segment in Entertainment City. Every operator is pursuing the same pivot.

The company is also reviewing its cost structure and prioritising management resource allocation. Some expenses increased in Q2 due to strategic investments intended to support future growth. That is corporate speak for spending money now to fix problems later. Whether those investments pay off will determine whether H2 delivers the promised turnaround. For context on how Philippine gaming is evolving, AGBrief tracks regional IR developments.

The Digital Pivot: Okada Play and Online Casino

Universal Entertainment has pinned its H2 turnaround hopes on a dual strategy. The company will expand online gaming while rebuilding land-based revenue. The digital push centres on two platforms. Okada Play, launched in partnership with PhilWeb Corporation in May 2026, is the newer entrant. PhilWeb delivers the full online gaming platform solution, including gaming content, technology, customer service infrastructure, and marketing support. The commercial rollout positions Okada Play as a challenger in the Philippine online gaming market.

Alongside Okada Play sits Okada Online Casino, the property’s existing digital platform. That service is restricted to Reward Circle members within the Philippines and offers live table games and slots. The dual-platform approach lets Universal Entertainment test different market segments. Okada Play targets a broader nationwide audience. Okada Online Casino serves existing loyalty members. Whether the two platforms cannibalise each other or create synergies remains to be seen.

MICE promotions round out the H2 plan. Universal Entertainment wants to drive convention and exhibition business to Okada Manila’s meeting facilities. That is a longer-cycle revenue stream than gaming, but it also carries higher margins and lower volatility. The combination of digital expansion, premium-mass targeting, and MICE gives the company multiple levers. None of them is guaranteed to work. All of them need time.

Amusement Equipment Saves the Group

Without its pachinko and pachislot division, Universal Entertainment would be in serious trouble. The amusement equipment segment recorded a 69.1% surge in net sales to JPY45.93 billion ($291.2 million). Adjusted EBITDA in the division rose 148.3% to JPY15.16 billion ($96.1 million). That single segment now generates more EBITDA than the entire group reported a year ago. It completely offset the IR collapse.

At group level, consolidated net sales rose 23.1% to JPY76.57 billion ($485.5 million). Group adjusted EBITDA increased 39% to JPY15.40 billion ($97.6 million). Operating profit jumped to JPY10.22 billion ($64.8 million) from just JPY847 million ($5.4 million) a year earlier. Net income attributable to owners of the parent reached JPY62 million ($393,000), reversing a JPY9.87 billion ($62.6 million) loss. The turnaround is entirely mechanical. Sell more pachinko machines. Absorb the IR pain.

Universal Entertainment maintained its full-year forecast: net sales of JPY140 billion ($888 million), operating profit of JPY16 billion ($101.4 million), and net income of JPY2 billion ($12.7 million). The guidance implies a much stronger H2, driven by amusement equipment momentum and the hoped-for IR turnaround. The market will watch whether Okada Manila can deliver on the digital and premium-mass promises. If not, the pachinko machines will need to keep spinning faster.

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This article has been thoroughly researched and reviewed by the CasinoBait editorial team to ensure accuracy and relevance for Asian casino players.