Universal Entertainment returns to profit as first-half revenue climbs 23.1%

Universal Entertainment returned to profitability in the first half of 2026, driven by a 23.1% increase in revenue to JP¥76.57bn, largely due to strong demand in its amusement equipment division. The company reported an operating profit of JP¥10.22bn, reversing losses from the previous year, despite challenges in its integrated resort segment in the Philippines. Universal maintained its full-year guidance, projecting net sales of JP¥140bn for fiscal 2026.

Key Points

First-half revenue rose 23.1% to JP¥76.57bn (US$483m)

Operating profit increased to JP¥10.22bn from JP¥847m a year earlier

Universal maintained its full-year earnings guidance

Universal Entertainment returned to profitability in the first half of 2026 as robust demand for its amusement equipment business more than offset continued pressure at Okada Manila. The company reported double-digit revenue growth alongside a sharp improvement in operating earnings.

For the six months ended June 30, consolidated net sales increased 23.1% year-on-year to JP¥76.57bn, while operating profit climbed to JP¥10.22bn from JP¥847m a year earlier. Ordinary profit reached JP¥3.13bn, reversing an ordinary loss of JP¥14.75bn in the prior-year period, while net income attributable to shareholders totaled JP¥62m, compared with a loss of JP¥9.87bn in the first half of 2025.

The company's amusement equipment division was the main growth engine, with revenue rising 69.1% to JP¥45.93bn and operating profit surging 173.7% to JP¥14.17bn. Universal sold 87,915 pachislot and pachinko machines during the period, benefiting from sustained demand for smart pachislot products.

Among its strongest-performing releases were Smart Pachislot Million God - Kamigami no Kiseki -, the first new title in the Million God series in 11 years, alongside Smart Pachislot Biohazard RE:3 and Smart Pachislot Birdie Wing - Golf Girls' Story -. The company also launched two pachinko models featuring Lucky Trigger 3.0 Plus technology.

The integrated resort segment, led by Okada Manila, remained under pressure. Revenue declined 13% year-on-year to JP¥30.13bn, while the operating loss widened slightly to JP¥1.37bn. Universal attributed the softer performance to increased competition in the Philippine gaming market and broader macroeconomic conditions.

To diversify its revenue base, the company accelerated its omnichannel strategy during the quarter, launching the Okada Play online gaming platform through a partnership with PhilWeb Corporation while expanding non-gaming events and strengthening its Reward Circle membership programme. Universal also continued to focus on developing its premium mass customer base and improving cost efficiency as part of its longer-term profitability strategy.

Looking ahead, Universal left its full-year guidance unchanged, forecasting net sales of JP¥140bn, operating profit of JP¥16bn and net income of JP¥2bn for fiscal 2026.