Universal Entertainment incurs $125.8M net loss in FY17

Tighter pachinko regulation in Japan and growing costs in Okada Manila have weighed heavily in Japanese gambling operator Universal Entertainment Corp. in the fiscal year 2017.

In a disclosure to the Tokyo Stock Exchange on Wednesday, Universal announced that it incurred a JPY13.4 billion ($125.8 million) net loss for the nine months ending on December 31, 2017 while its net revenue was at ¥68.55 billion ($643 million).

Universal explained that the net loss was a result of tighter gambling regulations in Japan, particularly on pachinko parlors, as well as the ballooning costs of Okada Manila’s construction delays and the on-going litigation against Wynn Resorts.

The company reported that its Pachislot and Pachinko business posted net sales of JPY50.35 billion ($472.74 million) for the April-December 2017 period, while operating profit is at JPY9.34 billion ($87.73 million).