Gaming income at Okada Manila decreases in the fourth quarter of 2024, attributed to a weaker VIP segment.
Tiger Resort Leisure and Entertainment Inc. (TRLEI), the brains behind Okada Manila, reported a 3.7% drop in gross gaming revenue (GGR) for Q4 2024, amounting to PHP8.98 billion (€149.3 million). The slump was primarily due to a dip in VIP table games, although a sequential increase of 9.1% compared to Q3 was observed.
VIP Table Games Fall Short
The VIP table games segment faced a 9.4% decline in GGR, totaling PHP3.15 billion (€52.4 million). Despite this drop, it showed a 27.5% sequential improvement in Q3. In contrast, revenue from mass table games registered a slight year-on-year improvement, reaching PHP2.56 billion (€42.6 million). Gaming machine revenue also saw a slight decrease, amounting to PHP3.27 billion (€54.9 million).
Adjusted EBITDA: A Mixed Bag
The adjusted segment EBITDA for the quarter fell by 10.2% compared to the same period in 2023, equaling 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: A Revenue Plunge
For the full year 2024, TRLEI reported a GGR of PHP34.8 billion (€578 million), representing a 21.8% decline compared to 2023. Adjusted segment EBITDA also dropped by 37.7%, settling at PHP7.66 billion (€127 million). These figures underscore the ongoing hurdles in Manila's casino market, particularly in appealing to high-spending VIP customers.
Visitor Numbers: A Silver Lining
In spite of revenue troubles, Okada Manila welcomed over 1.71 million visitors in Q4 2024, 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 Woes Persist
The overall decline in Okada Manila's gaming revenue mirrors broader issues affecting the industry, including a weakened VIP market. The once-robust Chinese customer base is yet to recover fully, posing ongoing obstacles for operators reliant on this segment. As the market adapts, future performance is likely hinged upon diversifying revenue streams and beefing up appeal for non-VIP patrons.
Asiabest Gaming's Surge
Meanwhile, Asiabest Gaming (ABG), a dormant firm owned by TRLEI, shot up as the Philippines Stock Exchange's top performer in 2024, surging by 654% to hit PHP22.70, despite being inactive for seven years. ABG's ascent began four months ago, aligning with Okada Manila's announcement of plans for an initial public offering in 2025.
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VIP Woes: A Deeper Dive
The VIP segment of Okada Manila has faced some tough hurdles, with a 43% year-over-year drop in VIP rolling chip volume and a 30.97% sequential decrease in the first quarter of 2025. The decrease in VIP activity and revenue indicates a shift in market dynamics, possibly due to increased competition or changes in international gaming trends. To revive the VIP market, operators might focus on diversifying revenue streams and targeting non-VIP patrons more effectively.
Sources:[1] Okada Manila 2025 Q1 Results[2] Casino Market Trends in Manila 2025 Q1 Analysis
- The drop in gross gaming revenue at Okada Manila, as reported by Tiger Resort Leisure and Entertainment Inc., was PHP3.15 billion (€52.4 million) from VIP table games in Q4 2024, representing a 9.4% decline.
- In 2025, Asiabest Gaming, a dormant firm owned by TRLEI, surged by 654% on the Philippines Stock Exchange, despite having been inactive for seven years, aligning with Okada Manila's 2025 initial public offering announcement.
- The adjust segment EBITDA for Okada Manila dropped by 10.2% compared to the same period in 2023, reaching PHP2.10 billion (€34.9 million) in Q4 2024, but more than doubled from the previous quarter.
- The decline in Okada Manila's gaming revenue and the ongoing struggles in the VIP segment reflect broader issues affecting the global casino-and-gambling industry, particularly the weakened VIP market and the slow recovery of the Chinese customer base.
