Universal Entertainment (6425) Q3 2024 earnings summary

Executive summary

• Net sales for the first nine months of 2024 declined to ¥92,366 million, down 25.6% year-over-year, with a net loss of ¥19,461 million compared to a profit last year.

• Operating profit dropped sharply to ¥423 million from ¥16,565 million year-over-year, reflecting weaker performance in both Amusement Equipments and Integrated Resort segments.

• Decline in earnings driven by lower sales in both core segments, absence of large foreign exchange gains, and higher yen-denominated interest expenses.

Financial highlights

• Gross profit for the first nine months of 2024 was ¥38,470 million or ¥53,895 million, both showing significant year-over-year declines.

• Ordinary loss of ¥11,974 million, a reversal from a ¥32,298 million profit in the same period last year.

• Adjusted segment EBITDA decreased to ¥19,560 million from ¥36,510 million year-over-year.

• Net assets declined to ¥362,012 million, mainly due to net loss and dividend payments; total assets decreased to ¥597,805 million.

• Net income per share was negative ¥251.14, compared to positive ¥309.02 last year.

Outlook and guidance

• Full-year 2024 net sales forecast revised to ¥126,000 million, down 29.6% year-over-year, with operating profit expected at ¥2,000 million and net loss forecast at ¥18,300 million.

• Amusement Equipments Business expects continued growth in smart Pachislot and Pachinko machine market share, with new product launches planned.

• Integrated Resort Business aims to boost marketing and attract more domestic and international guests, leveraging tourism growth in the Philippines.