Universal Entertainment narrows losses in Q1 as equipment sales surge

Universal Entertainment Corporation reported improved first-quarter results for the period ended March 31, 2026, with profitability rebounding on the back of strong performance in its Amusement Equipments Business.

Net sales rose 4.2% year over year to ¥28.4bn, while operating profit reached ¥3.5bn, reversing an operating loss of ¥2.5bn in the same period last year. Ordinary loss narrowed sharply to ¥0.2bn from ¥12.3bn a year earlier. Net loss attributable to owners of parent totaled ¥1.4bn, compared with a ¥7.6bn loss in the prior-year quarter.

The Amusement Equipments Business was the primary growth driver. Segment sales increased 46.8% year over year to ¥12.8bn, supported by robust demand for smart Pachislot machines. Operating profit for the segment reached ¥4.5bn, compared with a ¥1.2bn loss in the prior year. The company cited strong reception for new releases including Smart Pachislot Hanabi and Smart Pachislot Thunder V.

In contrast, the Integrated Resort Business, which includes Okada Manila in the Philippines, saw segment sales decline 16.0% year over year to ¥15.4bn. Operating profit dropped 92.8% to ¥23m amid intensifying competition and structural shifts in the VIP market. Although VIP turnover exceeded the prior year, revenue was affected by a lower win rate. The company said cost optimization efforts helped preserve profitability.

Looking ahead, Universal expects continued growth in Pachislot installations, with additional major titles scheduled for release in the second quarter. In the Philippines, the group plans to expand its online gaming initiatives, including OKADA PLAY, to complement its land-based operations as competition in both the VIP and mass markets remains intense.