Universal Entertainment (6425) Q4 2024 earnings summary

Executive summary

• Net sales for FY2024 declined to ¥126,328 million, down 29.4% year-over-year, with gross profit margin improving to 59.5% from 55.5%.

• Operating profit dropped sharply to ¥3,024 million from ¥30,480 million, and net loss attributable to owners was ¥15,569 million, reversing a profit of ¥28,439 million last year.

• Results were impacted by delayed amusement equipment releases, lower VIP guest numbers at OKADA MANILA, higher personnel expenses, and reduced non-operating income.

Financial highlights

• Gross profit decreased to ¥51,225 million from ¥79,661 million year-over-year, while selling, general, and administrative expenses rose by ¥3,223 million.

• Ordinary profit swung from ¥38,080 million to a loss of ¥5,599 million, impacted by higher interest expenses and lower non-operating income.

• Total assets increased slightly to ¥632,795 million, with non-current assets up by ¥29,336 million.

• Shareholders’ equity decreased by ¥21,659 million, mainly due to net loss and dividends paid; net assets at year-end were ¥369,731 million, down from ¥388,388 million.

• Cash and cash equivalents at year-end were ¥23,795 million, a decrease of ¥20,394 million from the previous year.

Outlook and guidance

• FY2025 forecast: net sales of ¥150,000 million (+18.7%), operating profit of ¥16,000 million (+429.1%), net income attributable to owners of ¥800 million, EPS of ¥10.32.

• 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.