Okada Manila, operated by Tiger Resort, Leisure & Entertainment Inc (TRLEI), experienced a substantial decline in gross gaming revenue (GGR) during the first quarter of 2024, primarily attributed to a significant downturn in the VIP segment. The GGR plummeted to PHP8.77 billion (€144.1 million), marking a 24% decrease from PHP11.57 billion (€190 million) in the same period of 2023.  

VIP table games witness a 42.61% year-on-year drop  

Gross gaming revenue from VIP table games at Okada Manila suffered a steep decline of 42.61% year-on-year, totalling just PHP2.58 billion (€45.26 million) for Q1 2024. This sharp downturn contrasts starkly with the PHP4.5 billion (€79 million) recorded in Q1 2023, significantly impacting the property’s overall GGR performance.??

Gaming machines outperform amidst overall GGR decrease  

Despite the general decline in GGR, gaming machines emerged as the top performer for Okada Manila during the first quarter of 2024. Generating PHP3.23 billion (€53 million) in revenue, albeit experiencing a 17% yearly fall, gaming machines showcased resilience amidst challenging market conditions.  

Mass market table games and online gaming experience declines  

The mass market table games segment at Okada Manila witnessed a 6% yearly drop in GGR, totalling PHP2.96 billion (€48.6 million) for Q1 2024. Additionally, mass online table volume experienced a significant decline of 68.5% year-on-year, contributing to the overall decrease in gaming revenue.  

Impact on total revenue and adjusted segment EBITDA  

The decline in gaming revenue led to an overall decrease in total revenue by 22.7%, amounting to PHP9.75 billion (€160 million) for the first quarter of 2024. Furthermore, adjusted segment EBITDA dropped by nearly 30%, reaching PHP2.33 billion (€38 million), reflecting the challenges faced by Okada Manila amidst evolving market dynamics.  

Operational insights and visitor trends  

Despite the revenue challenges, Okada Manila maintained a strong hotel occupancy rate of 83.2% and received 1.45 million visitors during the first quarter of 2024. While non-gaming revenue experienced a moderate decline of 6.4% compared to Q1 2023, the property exhibited resilience in managing operational aspects amidst market fluctuations.  

Expansion plan  

Earlier this year, TRLEI announced the collaboration with Dennis Uy’s PH Travel and Leisure Holdings Corp. This partnership secured a majority stake in the operating entities of the Mactan project, the Emerald Bay Resort.  

Upcoming SiGMA event: BIS SiGMA Americas 2024, find all the details here. 

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