Okada Manila’s gaming revenue declines in 4Q24 amid VIP segment weakness

Jenny Ortiz January 16, 2025

SiGMA news

Tiger Resort Leisure and Entertainment Inc. (TRLEI), the operator of Okada Manila, reported a 3.7 percent year-on-year decline in gross gaming revenue (GGR) for the fourth quarter of 2024. The figure reached PHP8.98 billion (€149.3 million), primarily due to a downturn in the VIP table games segment. However, this showed a 9.1 percent improvement compared to the previous quarter.

VIP table games underperform

The VIP table games segment experienced a 9.4 percent year-on-year drop in GGR, amounting to PHP3.15 billion (€52.4million). Despite this decline, the segment saw a sequential increase of 27.5 percent in the third quarter. Meanwhile, revenue from mass table games improved slightly year-on-year, reaching PHP2.56 billion (€42.6 million). Gaming machine revenue decreased slightly, registering PHP3.27 billion (€54.9 million).

Adjusted EBITDA reflects mixed performance

Adjusted segment EBITDA for the quarter fell by 10.2 percent compared to the same period in 2023, amounting to PHP2.10 billion (€34.9 million). However, it more than doubled from the previous quarter, reflecting some recovery despite ongoing challenges in the VIP segment.

Year-end results highlight revenue decline

For the full year 2024, TRLEI reported a GGR of PHP34.8 billion (€578 million), a 21.8 percent decline compared to 2023. Adjusted segment EBITDA also dropped by 37.7 percent, settling at PHP7.66 billion (€127 million). These figures underline the ongoing difficulties faced by the casino market in Manila, particularly in attracting high-spending VIP customers.

Visitor numbers show modest growth

Despite revenue challenges, Okada Manila recorded an increase in visitor numbers in the fourth quarter of 2024, with over 1.71 million visitors compared to 1.60 million during the same period in 2023. This suggests some resilience in the mass-market segment, even as the VIP segment continues to struggle.

Industry challenges persist

The overall decline in Okada Manila’s gaming revenue reflects broader issues affecting the industry, including a weakened VIP market. The once-robust Chinese customer base has yet to recover fully, posing ongoing challenges for operators dependent on this segment. As the market adjusts, future performance will likely hinge on diversifying revenue streams and enhancing appeal to non-VIP patrons.

Meanwhile, Asiabest Gaming (ABG), a dormant firm owned by TRLEI, has become the Philippine Stock Exchange’s top performer last year, surging by 654 percent to hit a five-year high of PHP22.70 from January to November 2024. Despite being inactive for seven years, ABG’s ascent began four months ago, coinciding with Okada Manila’s announcement of plans for an initial public offering in 2025.

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