Universal Entertainment (6425) Q1 2025 earnings summary

Executive summary

• Net sales declined 20.8% year-over-year to ¥27,280 million in Q1 FY2025, with a net loss attributable to owners of parent of ¥7,556 million compared to a profit of ¥3,450 million in Q1 FY2024.

• Net sales for 2024 were 126,328 million yen, down 29.4% year-over-year; operating profit fell 90.1% to 3,024 million yen; net loss attributable to owners was 15,569 million yen, compared to a profit of 28,439 million yen in 2023.

• Operating profit turned negative at -¥2,512 million in Q1 FY2025, down from ¥4,023 million, mainly due to lower sales and increased non-operating expenses, including a significant foreign exchange loss.

• Decline in results driven by delayed amusement equipment releases, lower VIP guest numbers at Okada Manila, and higher personnel expenses.

• Comprehensive income was negative 12,516 million yen, reversing a positive 42,161 million yen in 2023.

Financial highlights

• Gross profit margin decreased to 55.9% in Q1 FY2025 from 62.7% year-over-year; annual gross profit dropped to 51,225 million yen from 79,661 million yen.

• Ordinary loss in Q1 FY2025 was ¥8,781 million, impacted by a ¥5,338 million foreign exchange loss and ¥4,081 million in interest expenses.

• Cash and cash equivalents at year-end 2024 were 23,795 million yen, down from 44,190 million yen at the end of 2023.

• Net assets declined to 369,731 million yen from 388,388 million yen; shareholders' equity ratio fell to 58.4%.

• Net cash provided by operating activities was 1,518 million yen, a sharp drop from 28,017 million yen in 2023.

Outlook and guidance

• 2025 forecast: net sales of 150,000 million yen (+18.7%), operating profit of 16,000 million yen (+429.1%), net income attributable to owners of 800 million yen, and net income per share of 10.32 yen.

• Amusement Equipments Business expects nine new titles to be released in FY2025, with orders received for 35,000 units as of April.

• Amusement equipment market expected to improve with new smart Pachislot and Pachinko machines; integrated resort business aims to boost local and tourist traffic and expand online gaming.