Fitch analysts believe in a bright future for Okada Manila
Okada Manila Casino Resort in the Philippines could potentially become the leading integrated resort in the metropolitan entertainment center, according to analysts at Fitch Ratings Inc.
The published report of the rating agency emphasizes that the Okada Manila project, led by the Japanese conglomerate Universal Entertainment Corp. has a “large-scale and high-quality focus.”
Fitch has assigned a B + credit rating to a Japanese gambling company, thanks to Universal Entertainment's strong market position. The Philippine branch of the company, Tiger Resort Leisure and Entertainment Inc, operates the casino resort Okada Manila. Its construction is scheduled for completion in the third quarter of 2019.
Rating agency experts predict that the gambling gross revenue (GGR) in the Philippines will increase by several points.
“As the largest IR in the entertainment center, Okada Manila will benefit from this positive dynamic,” – Fitch representative said.
The casino resort management announced that it fixed the segment's adjusted profit in October at $7.1 before interest, taxation, depreciation and amortization (EBITDA). This is the largest income indicator since the launch of Okada Manila in 2016.
Nevertheless, Fitch stressed that the plans for expanding Okada Manila "strongly depend on the growth of the junket segment and high rollers." Unfortunately, the company has no relevant experience in working in these aspects, and therefore competition with local and foreign companies will be significant.
The rating agency also expressed concern about the ongoing conflict of corporate governance with the company's founder, the Japanese gambling entrepreneur Kazuo Okada, who is trying to regain control of Universal Entertainment Corp.
In November, Universal Entertainment reported a net profit of $ 1.48 billion in the third quarter of this year.