Philippines casino resort Okada Manila is seeing strong momentum as its parent company, Tokyo-listed operator UE Resorts International, prepares for a Nasdaq listing through a merger with special purpose acquisition company 26 Capital Acquisition Corp. The venue reported “exceptional fourth quarter and 2021 results,” exceeding EBITDA projections by 122%.
The venue, one of the primer destination casinos resorts in Asia and the largest in Philippines, posted total revenue of $399.6 million for fiscal year 2021, exceeding a prior forecast of $82 million, while also up 24% over 2020.
Meanwhile, Adjusted EBITDA delivered for FY2021 came in at $46.8 million, $72 million more than the prior year, primarily due to a very strong performance in gaming in Q4 and as a result of significant cost reductions implemented during the period.
Going forward, the integrated resort, operated by UE Resorts International subsidiary Tiger Resort, Leisure and Entertainment, expects further strong earnings recovery as the country reopens its borders to international visitors as Covid-19 measures ease.
Even though some uncertainties remain in place, with the future impact of the pandemic still largely unknown, casino officials expressed optimism that the business will continue picking up the pace and delivering stronger earnings, driven by pent-up demand.
“We are excited and optimistic about the recent reopening of the Philippines to international tourists,” Byron Yip, president of Okada Manila, told Forbes Asia. “We look forward to welcoming new and existing international customers to our property.”
Yip further said that Okada Manila is prepared to meet the influx of tourists expected after full construction completes by the end of the first quarter of 2022. The construction process currently underway will bring total hotel room inventory close to 1,000 rooms, and increase capacity to operate 974 gaming tables and 6,890 electronic machines.
At over 50 acres, Okada Manila currently includes approximately 35,000 square meters of gaming space with licensed capacity to operate 599 gaming tables and 4,263 electronic gaming machines. The property also includes two hotel towers with 993 luxury rooms, a retail boulevard with space for 50 shops, Cove Manila night club and indoor beach club, over 25 dining options, and one of the world’s largest multicolor dancing and musical fountains.
“The performance seen in Q4 underscores people’s desire to get out and spend money on leisure activities,” Yip said in a press statement back in January. “We have ended the year on a high note, with Q4 demonstrating our continued strong execution and ability to bring best operating practices that maximize productivity across the full spectrum of gaming, hospitality, retail, and entertainment offerings.”
He further described that the upcoming merger, along with “continued optimization” for gaming business and diversification of non-gaming revenue streams, will help deliver sustained growth and strong returns for shareholders “in 2022 and beyond.”
The merger between UE Resorts and 26 Capital Acquisition Corp. was first announced in October last year. The deal values the casino resort at $2.6 billion, and the combined entity will be owned 87.9% by UE, a unit of pachinko machines and casino equipment business Universal Entertainment Corp., which was founded by Japanese billionaire Kazuo Okada.
“Coming out of the pandemic, there’s tremendous pent-up demand, not just in the Philippines, but also in Macau and throughout the region,” 26 Capital CEO Jason Ader told Forbes Asia. “We saw evidence of that last year in Las Vegas, which had its absolute best year ever, with no business travel and convention travel.”
Going forward, Ader expects Asian casinos to experience similar growth to their Nevada counterparts, which in 2021 posted an all-time high of $13.4 billion as Covid-19 restrictions eased. “We will see results that will exceed 2019 levels, perhaps not in 2022, perhaps not even in 2023, but we look out to 2024 and beyond,” Ader added.
Original article: https://www.yogonet.com/international/news/2022/03/02/61605-okada-manila-revenue-for-fy21-above-forecasts-amid-nasdaq-spac-preparation
